Shinhan Bank and KIBO to Support Companies Affected by the Middle East War with 200 Billion Won in Funding

A Total Contribution of 4 Billion Won to KIBO
Higher Guarantee Ratios and Reduced Guarantee Fee Burdens

Shinhan Bank, in collaboration with the Korea Technology Finance Corporation (KIBO), will provide financial support totaling 200 billion won to small and medium-sized enterprises (SMEs) affected by the Middle East war.

Exterior view of Shinhan Bank.

On June 26, Shinhan Bank announced that it had signed a "Financial Inclusion Support Agreement for Overcoming SME Crises Due to the Middle East War and Other Events" with KIBO.

Through this agreement, Shinhan Bank will contribute a total of 4 billion won, consisting of a 2.5 billion won special contribution and 1.5 billion won in guarantee fee support. KIBO plans to use these funds to offer special guarantee agreements totaling 50 billion won and guarantee fee support agreements totaling 150 billion won, supplying a total guarantee amount of 200 billion won.

For the special contribution, companies will receive a 100% guarantee ratio for three years and up to a 0.4 percentage point reduction in guarantee fees depending on the type of damage incurred. For companies utilizing the guarantee fee support agreement, Shinhan Bank will provide up to a 0.5 percentage point guarantee fee subsidy for two years. In addition, depending on the type of company and guarantee product, KIBO’s special guarantee program will offer preferential guarantee limits and guarantee fee reductions.

The support targets include new technology businesses that meet KIBO's technology guarantee requirements and have suffered or are at high risk of suffering export contract cancellations or payment delays due to the Middle East war. Companies experiencing difficulties in procuring raw materials due to crude oil supply imbalances and rising oil prices, as well as those facing management challenges due to increases in exchange rates, oil prices, or logistics costs, are also eligible for support.

A Shinhan Bank representative said, "We hope this support will help SMEs, whose management burdens have increased due to instability in the Middle East, secure the necessary funds in a timely manner and reduce their financial costs."

This content was produced with the assistance of AI translation services.