NH Nonghyup Bank Partners with Korea Credit Guarantee Fund to Provide 383 Billion Won in Productive Finance Support

Supporting SME Growth and Revitalizing the Regional Economy
Through Expansion of Productive Finance and Financial Support for Local Small and Medium-sized Enterprises

NH Nonghyup Bank announced on July 22 that it has signed a Financial Business Agreement with Korea Credit Guarantee Fund to expand productive finance and provide financial support for growth recovery, as well as a separate Financial Business Agreement for expanding regionally specialized productive finance and financial support for regional growth recovery.

The core of this agreement is to expand productive finance while separately operating a regional specialization agreement to strengthen financial support for local base companies and non-metropolitan area companies. Through this, the bank aims to enhance the competitiveness of companies with high growth potential and invigorate the regional economy.

To expand productive finance, Nonghyup Bank will provide a special contribution of 3.5 billion won and a guarantee fee support grant of 1.5 billion won, totaling 5 billion won. The bank will also offer 220 billion won worth of agreement guarantees. Korea Credit Guarantee Fund will provide preferential benefits such as: a 100% guarantee ratio for three years; a 0.2 percentage point reduction in guarantee fees (for three years); and a 0.5 percentage point support in guarantee fees (for two years).

The support targets include companies engaged in new growth engine industries, promising startups, export and overseas expansion companies, job-creating companies, and venture companies.

In addition, regarding the expansion of regionally specialized productive finance, Nonghyup Bank will contribute a special grant of 4 billion won and a guarantee fee support grant of 1 billion won, totaling 5 billion won, and supply 163 billion won worth of agreement guarantees. Korea Credit Guarantee Fund will offer benefits such as: a 100% guarantee ratio for three years; up to a 0.3 percentage point reduction in guarantee fees (for three years); and a 0.6 percentage point support in guarantee fees (for two years). Additionally, the program aims to support companies in regional base industries, small and medium-sized enterprises relocating to local areas, and local investment companies.

A representative from NH Nonghyup Bank said, "We will actively participate in the government's productive finance policy to continuously expand financial support for companies with high growth potential and regional companies, striving to strengthen corporate competitiveness and contribute to regional economic revitalization."

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