Gwangju Bank to Provide a Total of 500 Billion KRW Support to Small and Medium Enterprises

‘Chuseok Special Fund Loan’ New Funds 300 Billion Won · Maturity Extension 200 Billion Won

[Asia Economy Honam Reporting Headquarters Reporter Park Seon-gang] Gwangju Bank (President Song Jong-wook) will provide 500 billion KRW in special funds for small and medium-sized enterprises (SMEs) ahead of Chuseok.

Gwangju Bank announced on the 4th that it will urgently support 300 billion KRW in new funds through the 'Chuseok SME Special Fund Loan' from the 7th to November 6th to assist local SMEs and small business owners facing difficulties with operating funds.

In addition, 200 billion KRW in maturity extension funds have been allocated so that, except for special cases, customers with loans maturing during this period can extend the maturity if they wish.

This special fund support was quickly implemented ahead of Chuseok, when demand for funds concentrates, as a livelihood stabilization measure considering the local economic issues caused by the impact of COVID-19.

It plans to support labor costs or unpaid wages, raw material purchase funds, and emergency payment funds for local SMEs and small business owners.

The support limit per company for the Chuseok special fund loan is up to 2 billion KRW, and the interest rate will be preferentially reduced by up to 0.50%p compared to the calculated rate, which is expected to reduce the financial burden on SMEs and small business owners.

Song Jong-wook, president of Gwangju Bank, said, "I hope this Chuseok special fund loan support will greatly help resolve the financial difficulties of local SMEs and small business owners," and added, "Going forward, Gwangju Bank will continue to pursue value beyond profit and, as the representative bank of Gwangju and Jeonnam, will carry out various financial support measures for local SMEs and small business owners with a sense of mission to achieve mutual growth with the region."

Meanwhile, Gwangju Bank also led efforts to alleviate the management difficulties of local SMEs and small business owners by supporting 453.5 billion KRW in new loans and 339.9 billion KRW in maturity extensions through special fund support during this year's Lunar New Year.

Additionally, to overcome the damage caused by COVID-19, Gwangju Bank contributed 1 billion KRW each to the Gwangju Credit Guarantee Foundation and Jeonnam Credit Guarantee Foundation, and 500 million KRW to the Korea Technology Finance Corporation, while providing its own special fund support. This special support, totaling 400 billion KRW with a limit of 500 million KRW per company, targeted local SMEs and individual business owners engaged in travel, accommodation, and food service industries.

Furthermore, by visiting companies affected by heavy rains to identify financial difficulties, Gwangju Bank provided 100 billion KRW in emergency management stabilization funds and has been leading win-win management efforts to overcome difficulties in the local economy whenever challenges arise.

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