Daegu Bank Provides 500 Billion KRW Financial Support Ahead of Seollal Holiday

[Asia Economy Reporter Minyoung Kim] DGB Daegu Bank announced on the 6th that it will provide a special Lunar New Year fund worth 500 billion KRW starting from the 6th to help alleviate the financial difficulties of local small and medium-sized enterprises (SMEs) ahead of the Lunar New Year holiday.

This fund support is designed to assist companies experiencing temporary cash shortages due to raw material payment settlements, employee salaries and bonuses, etc. It targets companies with a high proportion of labor costs, companies engaged in region-specific industries, and other companies that significantly contribute to revitalizing the local economy. The program will run until the 21st of next month, with a support limit of up to 1 billion KRW per company, and amounts exceeding this limit may be supported if approved by the headquarters.

The loan period includes both lump-sum repayment loans within one year and principal-equal installment repayment loans up to five years to reduce financial costs and facilitate various financial planning. To ease the interest burden on local SMEs, preferential interest rates of up to 1.50 percentage points or more will be applied depending on credit ratings. For prompt fund support, the loan handling process will be simplified by omitting the calculation of working capital limits, relaxing credit evaluations, and easing approval authority.

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