KB Kookmin Bank Provides 850 Billion KRW in Credit Support to Companies Affected by COVID-19

Bank funds of 400 billion KRW, 450 billion KRW loan supply through guarantee foundation contributions, and preferential loan interest rates
Interest rate benefits and waiver of overdue interest for COVID-19 affected customers extending existing loans
Reduction of export-import fees and preferential exchange rates for COVID-19 affected companies

[Asia Economy Reporter Kangwook Cho] KB Kookmin Bank announced on the 27th that it will provide loans totaling 850 billion KRW to small business owners and small and medium-sized enterprises (SMEs) affected by the spread of COVID-19.

First, KB Kookmin Bank will newly support loans worth 400 billion KRW for companies affected by COVID-19. The financial support targets are small business owners and SMEs experiencing management difficulties due to COVID-19.

For companies in urgent need of working capital, new loans will be provided up to a limit of 500 million KRW within the scale of the damage, along with preferential interest rate benefits of up to 1.0%p.

KB Kookmin Bank will make a special contribution of 30 billion KRW to regional credit guarantee foundations and the Korea Credit Guarantee Fund and support loans worth 450 billion KRW. The target companies are small business owners affected by COVID-19, and preferential interest rates will be offered based on transaction performance.

In particular, the 45 billion KRW guaranteed loan supported through a special contribution to the Korea Credit Guarantee Fund will be provided without restrictions on business type for small business owners located in Daegu Metropolitan City, Gyeongsangbuk-do, Asan City, Jincheon City, and Icheon City.

For affected companies holding loans with upcoming maturities, extensions of the loan period will be possible without additional principal repayment, applying preferential interest rates within 1.0%p. Also, if principal and interest are paid normally within three months from the date of damage occurrence, overdue interest will be waived.

For affected companies engaged in import and export transactions, preferential exchange commission rates will be applied when purchasing export bills, and delayed interest on export bill deposits will be reduced. When opening import letters of credit, acceptance commission rates will be preferentially applied, and import cargo guarantee fees will be preferentially applied within a maximum range of 3.0%. Additionally, companies making overseas remittances related to import and export will be exempt from remittance fees, and up to 90% preferential exchange rates will be provided when handling import/export operations and overseas remittances.

Furthermore, KB Kookmin Bank is providing comprehensive consulting services such as commercial area analysis and financial consultation for post-startup funding at the Yeouido HUB Center and 12 'KB SOHO Consulting Centers' nationwide. For companies affected by COVID-19, SOHO consulting will be prioritized, and guarantee limits will also be preferentially applied.

In addition, since the 25th, KB Kookmin Bank has been waiving fees for internet banking, star banking, and automated teller machine usage for customers in the Daegu and Gyeongbuk regions. This is being implemented to minimize customer damage by providing financial convenience and reducing fees amid the spread of COVID-19 damage.

A KB Kookmin Bank official said, "Going forward, KB Kookmin Bank will continuously seek various support measures to overcome COVID-19," adding, "We hope that affected companies and the public will return to normal as soon as possible."

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