Korea Technology Finance Corporation, KB Kookmin Bank, and Hana Bank to Provide Financial Support for SMEs Impacted by the Middle East War
Agreement Guarantees Worth 453.4 Billion Won
Supporting Management Stability and Crisis Recovery
Korea Technology Finance Corporation announced on May 22 that it has signed a "Financial Inclusion Support Agreement for SMEs to Overcome Crises Stemming from the Middle East War and Related Events" with KB Kookmin Bank and Hana Bank.
This agreement was established to alleviate the financial burdens of export and import small and medium-sized enterprises (SMEs) facing difficulties due to the prolonged Middle East war and instability in the external environment, which have led to increased exchange rates, rising oil prices, and higher logistics costs. The agreement aims to support management stability by providing swift financial assistance.
Under the agreement, Korea Technology Finance Corporation will supply a total of 453.4 billion won in guarantee support, utilizing special contributions of 3 billion won and guarantee fee support funds of 2 billion won from both KB Kookmin Bank and Hana Bank. Korea Technology Finance Corporation will offer benefits such as increasing the guarantee ratio (from 85% to 100% for three years) and reducing guarantee fees (by up to 0.4 percentage points for three years). KB Kookmin Bank and Hana Bank will provide support for guarantee fees (up to 0.7 percentage points for two years).
Eligible recipients include new technology businesses that meet the guarantee requirements of Korea Technology Finance Corporation, such as: SMEs directly exporting to the Middle East (or expected to do so); companies affected by disruptions in the supply chain of Middle Eastern crude oil; enterprises facing management difficulties due to worsening economic conditions resulting from the Middle East war; and other companies recommended by the participating banks.
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Korea Technology Finance Corporation plans to use this agreement as an opportunity to establish an organic cooperation system with each partner bank and to actively support the smooth financing and export recovery of SMEs and venture businesses facing external uncertainties. Kim Joungho, Chairman of Korea Technology Finance Corporation, stated, "This agreement is significant in that both policy finance and private finance have joined forces to respond to crises at a time when management burdens on SMEs are increasing due to external uncertainties. Korea Technology Finance Corporation will continue to expand cooperation with financial institutions, establish a financial support system that can proactively respond to crises, and support the management stability of affected companies."
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