Korea Airports Corporation Establishes 8 Billion KRW Win-Win Cooperation Fund to Support Overcoming COVID-19

[Asia Economy Reporter Dongwoo Lee] Korea Airports Corporation announced on the 24th that it signed a financial support agreement with IBK Industrial Bank of Korea at its headquarters in Gangseo-gu, Seoul, to help small and medium-sized enterprises (SMEs) and small business owners in the aviation industry overcome the COVID-19 crisis.

Under this agreement, the Corporation will deposit 4 billion KRW interest-free with IBK Industrial Bank of Korea, which will provide low-interest loans with preferential interest rates to SMEs and small business owners in the aviation industry and airport tenants cooperating with the Corporation, within a limit of 8 billion KRW, twice the deposit amount.

The loan limits are 500 million KRW for low-cost carriers (LCCs), 300 million KRW for aviation-related businesses such as ground handling companies, and 200 million KRW for about 160 airport tenants. The loans will have a reduced interest rate lowered by 0.65 percentage points, and depending on individual transaction contributions and credit ratings, borrowers can receive an additional interest rate reduction of up to 1.4 percentage points.

Since 2019, the Corporation has been operating a 1 billion KRW startup growth fund with Hana Bank to support startup companies in becoming self-reliant. With the additional 8 billion KRW raised this time from IBK Industrial Bank of Korea, the total size of the win-win fund aimed at realizing social value has increased to 9 billion KRW.

Son Chang-wan, President of Korea Airports Corporation, said, “We hope this will provide some help to SMEs and small business owners in the aviation industry and airport tenants who are experiencing management difficulties due to the prolonged COVID-19 pandemic,” and added, “We will continue to promote various social value activities and take the lead in win-win cooperation.”

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