Hana Bank Signs Mutual Growth Agreement with Incheon City: "From Livelihoods to Growth and Investment"

Providing Tailored Financial Services for Young People and Vulnerable Groups
Supporting High-Tech Companies Through Special Contributions
Launching the Incheon Unicorn Fund to Discover and Invest in Startups

Hana Bank announced on the 17th that it has signed a financial support business agreement for mutual growth with Incheon Metropolitan City, aiming to support the livelihoods of local residents, the future strategic industries, and the cultivation of innovative companies.

Hoh Sung Lee, President of Hana Bank (right), is taking a commemorative photo after signing a total of three business agreements with Hyunseok Song, Chief Policy Officer of Incheon City, at Incheon City Hall on the 14th to support financial co-growth in the Incheon area. Provided by Hana Bank

The signing ceremony, which took place at Incheon Metropolitan City Hall on the 14th, was attended by Ho-sung Lee, President of Hana Bank, Hyeon-seok Song, Chief Policy Officer of Incheon City, and Jusun Park, Executive Director of Korea Technology Finance Corporation.

Under this agreement, Hana Bank will first provide financial services to support residential stability and job preparation for young people. Specifically, the bank plans to offer stage-by-stage financial services tailored to vulnerable groups, including emergency living expense support for victims of jeonse (rental deposit) fraud, principal repayment assistance for delinquent high-risk borrowers who are making good-faith payments, and recovery support for those with prolonged delinquencies.

An additional special contribution to the Incheon Credit Guarantee Foundation will also facilitate the supply of guarantee-backed loans worth about 30 billion won for small business owners. The Incheon-type Special Management Stability Fund will be expanded by adding 83.3 billion won to the existing 165 billion won, bringing the total to 248.3 billion won.

Special contributions will also be made to foster future growth engines in the ABC+E (AI, Bio, Contents & Culture, Energy) sectors. With these funds, Korea Technology Finance Corporation will provide a total of 150 billion won in guaranteed credit under the agreement. Recipient companies will benefit from a guarantee ratio of up to 100% and support for guarantee fees of up to 0.6 percentage points.

Additionally, together with Incheon City and Hana Securities, a 200 billion won Incheon Unicorn Fund will be formed to discover and invest in promising startups in the region. Hana Financial Group will invest 200 billion won into the fund, with Hana Securities responsible for its formation and management, while Hana Bank will actively identify and recommend outstanding local startups and companies, thereby supporting the growth of regional enterprises.

The fund will invest not only in companies based in Incheon, but also in high-growth companies planning to relocate to the city. By combining follow-on investments and direct investments, the bank intends to support the scaling up of local businesses. It was explained that by providing growth capital, rather than simply focusing on loan-based support, the initiative aims to establish a virtuous investment ecosystem that will help companies progress to unicorn status.

According to Hana Financial Group, the relocation to Cheongna, Incheon is expected to generate direct and indirect economic effects of approximately 3.4 trillion won over the next ten years. The initiative is projected to create roughly 15,000 new jobs and increase tax revenue, including local corporate taxes and personal income taxes, by around 420 billion won. The regional economic ripple effects, including the influx of partner companies and the stimulation of production and value-added activities, are estimated to be about 3.02 trillion won.

Ho-sung Lee, President of Hana Bank, stated, “The role of a regional bank is not simply to open branches in the area, but to be the first to consider and address the financial needs of local citizens and businesses, and to invest together in the region’s future. Hana Bank will spare no effort, in line with Incheon City’s policies, to serve as a hometown bank that provides meaningful support for the recovery of Incheon’s local economy and the fostering of future growth drivers.”

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