Woori Bank and Kibo Sign Financial Support Agreement for 'COVID-19 Affected Companies'

[Asia Economy Reporter Kim Hyo-jin] Woori Bank announced on the 5th that it has signed a 'Financial Support Agreement for Innovation Company Scale-up and Technology Start-up Activation' with the Korea Technology Finance Corporation (KOTEC) to support companies affected by the novel coronavirus disease (COVID-19) and innovative companies. Woori Bank made a special contribution of 5 billion KRW to KOTEC and, using this fund, will implement a total of 205 billion KRW worth of 'Special Contribution Agreement Guarantees' and 'Guarantee Fee Support Agreement Guarantees.'

The target companies for the Special Contribution Agreement Guarantees include COVID-19 affected companies, job-creating companies, innovative growth companies, and social enterprises. Using Woori Bank's special contribution fund of 4 billion KRW, companies can receive guarantees with a 100% guarantee ratio to lower loan interest rates, and loans can be used for up to 10 years. Additionally, loans can be obtained at even lower interest rates by utilizing the Bank of Korea's financial intermediation support system (C1, C2), among others.

The target companies for the Guarantee Fee Support Agreement Guarantees are the same as those for the Special Contribution Agreement Guarantees. Using Woori Bank's special contribution fund of 1 billion KRW, guarantee fees of 0.4 percentage points per year will be supported for two years, and KOTEC will also support guarantee fees of 0.2 percentage points per year for three years.

A Woori Bank official stated, "Through collaboration with KOTEC, we will do our best to support small and medium-sized enterprises facing difficulties," adding, "In particular, we will make greater efforts to provide practical support to SMEs in Daegu and Gyeongbuk, which are struggling due to the spread of COVID-19."

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