Gwangju Bank to Provide 500 Billion KRW Special Funds for SMEs Ahead of Lunar New Year

[Asia Economy Honam Reporting Headquarters Reporter Park Seon-gang] Gwangju Bank (President Song Jong-wook) announced on the 14th that it will urgently support 300 billion KRW in new funds through the ‘Special Loan Fund for Small and Medium Enterprises (SMEs)’ until the 26th of next month to assist local SMEs and small business owners facing difficulties with operating funds ahead of the Lunar New Year holiday.

Considering the stagnant local economy due to the impact of ‘COVID-19,’ Gwangju Bank decided to promptly implement this measure as a livelihood stabilization policy ahead of the Lunar New Year, when demand for funds is concentrated. The bank plans to support labor costs or unpaid wages, raw material purchase funds, and emergency payment funds for local SMEs and small business owners.

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

The support limit per company for the Lunar New Year special loan fund 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 Lunar New Year special loan fund support will greatly help alleviate the financial difficulties of local SMEs and small business owners,” and added, “We will continue to implement various financial support measures for SMEs and small business owners located in the region to achieve mutual growth and development with the community.”

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