KB Kookmin Bank Signs 'Financial Inclusion Support Agreement for Companies Affected by Middle East War'

Special Contribution of 5 Billion Won to Korea Technology Finance Corporation
Support for Guarantee-Backed Loans Worth Approximately 230 Billion Won

On May 22, KB Kookmin Bank announced that it had signed a "Financial Inclusion Support Business Agreement for Overcoming the Crisis of Small and Medium-Sized Enterprises due to the Middle East War and Other Factors" with the Korea Technology Finance Corporation.

Under this business agreement, KB Kookmin Bank will make a special contribution of 5 billion won to the Korea Technology Finance Corporation, and plans to support guarantee-backed loans amounting to approximately 230 billion won. Specifically, this includes 60 billion won for special contribution agreement guarantees and approximately 170 billion won for guarantee fee support agreement guarantees. The aim is to ease the financial burden not only for companies directly or indirectly affected by the Middle East war, but also for those struggling with business operations due to high oil prices and a strong Korean won.

Eligible companies are those that meet the Korea Technology Finance Corporation’s technology requirements and include: ▲ companies that directly export (or plan to export) automobiles, electric power equipment, air conditioning equipment, and air conditioners to the Middle East; ▲ companies that require raw materials and have suffered from the collapse of Middle Eastern crude oil supply chains, such as those in the petroleum, chemical, and plastics manufacturing sectors; ▲ companies experiencing management difficulties due to worsening economic conditions, such as rising exchange rates and logistics costs, among others.

Eligible companies can either receive a guarantee certificate under the special contribution agreement guarantee, which provides a preferential 100% guarantee rate for three years, or receive a guarantee fee support agreement certificate, which offers a total guarantee fee support of 1.2 percentage points for two years.

A representative from KB Kookmin Bank stated, "We hope this agreement will provide practical support for stabilizing the management of small and medium-sized enterprises struggling due to the Middle East war," and added, "We will continue to provide timely support as a reliable financial partner so that SMEs are not shaken by changes in the external environment."

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