Jeon Hyunhee’s Youth Startup Financing Program Expands to 600 Billion Won as KB Kookmin Bank Joins
Third to join after Hana Bank and Woori Bank... an additional 200 billion won in funding
For young entrepreneurs aged 39 and under... no collateral, no guarantee fees, and interest rates in the 3% range
A youth startup financial support program promoted by Rep. Jeon Hyunhee of the Democratic Party of Korea has expanded to a total of 600 billion won with the participation of KB Kookmin Bank.
Rep. Jeon said on Nov. 5 that she attended the signing ceremony for a business agreement on the "Youth Startup Hope Ladder Financial Support" program at KB Kookmin Bank's headquarters in Yeouido, Seoul. The ceremony was attended by KB Kookmin Bank President Lee Hwanju, Korea Credit Guarantee Fund Chairman Kang Seungjun, and Korea Technology Finance Corporation Executive Director Jang Jinyeop, among others.
Under the agreement, KB Kookmin Bank will contribute a total of 11.8 billion won to the Korea Credit Guarantee Fund and the Korea Technology Finance Corporation, including 5 billion won in special contributions and 900 million won in guarantee fee support for each fund. The bank plans to use these funds to provide 200 billion won in loans for youth startups.
Eligible companies must have a representative aged 17 to 39 and have been in business for no more than seven years. They must also meet the guarantee requirements of the Korea Credit Guarantee Fund and the Korea Technology Finance Corporation. Selected companies will receive a 100% guarantee ratio for three years and a full exemption from guarantee fees. They can access funds at interest rates in the 3% range without having to provide separate collateral.
KB Kookmin Bank is the third bank to join the program, following Hana Bank and Woori Bank. The total amount of youth startup loans supplied by the three banks has consequently increased to 600 billion won.
Rep. Jeon has worked with the Korean Financial Industry Union to promote the program, which was established to support young entrepreneurs who struggle to secure financing because of insufficient collateral or low credit ratings.
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Rep. Jeon said, "The starting point of basic finance is to lower barriers to financial services and create an environment where anyone can take on a challenge based solely on their potential and ideas. I hope participation and support from the financial sector will continue to expand so that this program can become a ladder to new opportunities for more young people."
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