KDB Industrial Bank Launches Three Financial Stability Partnership Programs Worth 1 Trillion Won

COVID-19 Impacted Business Support Program Through Partial Profit Redistribution

[Asia Economy Reporter Park Sun-mi] On the 29th, the Korea Development Bank announced the launch of the "Financial Stability Partnership Program," worth approximately 1 trillion KRW, to support companies affected by COVID-19 facing financial difficulties.

This program consists of three tailored solutions designed to resolve various financial challenges for small and medium-sized enterprises (SMEs) and mid-sized companies affected by COVID-19.

The "Post-COVID Business Restructuring Boom-up Facility Fund" is a facility fund product dedicated to companies planning to enter new businesses through mergers and acquisitions or investing in productivity improvements through research and development (R&D) and automation process enhancements. It features an interest rate reduction of up to 1.0 percentage point compared to general products.

The "Post-COVID Management Stabilization (Step-up) Support Fund" is an operating fund product designed for companies temporarily facing liquidity shortages. It reduces the initial interest burden and provides long-term funds. Borrowing is possible for up to three years, and during the initial borrowing period, only interest at the base rate level is paid. Therefore, companies currently struggling with liquidity shortages can use stable long-term funds without the burden of initial interest repayments.

The "Post-COVID Financial Stability Investment Fund" targets companies with financial stability needs due to increased debt ratios. The Korea Development Bank supports financial stability by expanding capital and reducing financial costs through the purchase of stocks and stock-related bonds (such as redeemable preferred stocks and convertible bonds).

Following the pioneering COVID-19 financial support conducted last year, the Korea Development Bank plans to continue providing financial support this year to facilitate the smooth recovery of affected companies. A bank official stated, "We will continue to do our best to support the recovery of affected companies and lay the foundation for economic re-leap through close cooperation with the government in preparation for the post-COVID era."

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