Daegu Bank Offers 500 Billion KRW Special Loans for Chuseok Holiday

[Asia Economy Reporter Kim Min-young] DGB Daegu Bank is providing special funds to local small and medium-sized enterprises (SMEs) and small business owners who are experiencing difficulties due to the resurgence of COVID-19 ahead of Chuseok.

Daegu Bank announced on the 8th that it will newly provide special Chuseok funds worth 500 billion KRW over about a month from the 14th of this month to the 16th of next month to alleviate the financial difficulties of local SMEs facing temporary cash shortages ahead of the Chuseok holiday.

The support limit per company is up to 1 billion KRW, and amounts exceeding 1 billion KRW can be supported if approved by headquarters. To reduce interest burden, preferential interest rates of up to 1.50 percentage points per annum or more will be applied depending on the credit rating, and loan processing procedures such as omitting the calculation of working capital limits and relaxing credit evaluations will be simplified for prompt fund support.

In addition, the currently implemented COVID-19 support measures for local small business owners will be further expanded by establishing and operating a comprehensive COVID-19 small business consultation desk at 10 Daegu Bank branches near the Daegu-Gyeongbuk Regional Credit Guarantee Foundation (8 branches in Daegu and 2 branches in Gyeongbuk).

Through the consultation desk, financial support consultations such as additional liquidity support, maturity extension, and installment repayment deferral are available, along with applications for management consulting and related education programs to support sales and profit recovery for local small business owners and self-employed individuals. Services such as company promotion and marketing support through Daegu Bank’s lifestyle platform 'IM Shop' and commercial district analysis for business revitalization are also available.

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