Korea Credit Guarantee Fund Signs Agreement with Hana Bank, Busan City, and Busan Chamber of Commerce to Support Key Enterprises in Yeongnam Region

326 Billion Won in Customized Financial Support to Foster Key Enterprises in the Yeongnam Region

On March 3, Korea Credit Guarantee Fund announced that it had signed the “Busan and Yeongnam Region Key Enterprise Development Support Agreement” with Hana Bank, Busan Metropolitan City, and the Busan Chamber of Commerce and Industry.

The fund explained that this agreement was established to enhance financial accessibility for companies located in Busan and the Yeongnam region, and to revitalize the local economy by discovering and nurturing regional key enterprises.

Under the agreement, Hana Bank will contribute a total of 10 billion won to the Korea Credit Guarantee Fund (8 billion won as a special contribution and 2 billion won as a guarantee fee support fund), and the fund plans to provide agreement-based guarantees totaling 326 billion won using these resources.

The support targets include small and medium-sized enterprises located in the Yeongnam region, particularly those engaged in new growth engine industries, export and overseas expansion, and local base industries.

The Korea Credit Guarantee Fund will apply a 100% guarantee ratio for three years through the special contribution agreement guarantee, and will offer a 0.3 percentage point reduction in guarantee fees. In addition, through the guarantee fee support agreement, it will provide a 0.6 percentage point guarantee fee support for two years to ease companies’ financial costs.

Furthermore, Busan Metropolitan City will support interest payments of 2.0 percentage points per annum for three years on working capital totaling 150 billion won provided to Busan-based companies, with a limit of 800 million won per company. The Busan Chamber of Commerce and Industry plans to promote the program and encourage participation among its member companies and local enterprises.

A representative of Korea Credit Guarantee Fund stated, “We hope this agreement will help stabilize management for small and medium-sized enterprises and invigorate the regional economy of Yeongnam. Going forward, the fund will continue to strengthen its position as a policy-based financial institution driving balanced regional development by closely cooperating with relevant organizations.”