Busan Bank Provides 35 Billion KRW Financial Support to Shipbuilding and Marine Equipment Companies in Busan Region

[Asia Economy Reporter Kim Hyo-jin] BNK Busan Bank aims to revitalize the local economy by providing financial support to local shipbuilding and marine equipment companies and Daewoo Shipbuilding & Marine Engineering (DSME) partner companies that are struggling due to the prolonged downturn in the shipbuilding industry.

On the afternoon of the 10th, BNK Busan Bank signed a 'Busan Shipbuilding and Marine Equipment Emergency Fund Support Win-Win Cooperation Agreement' with Busan City, DSME, Busan Shipbuilding and Marine Equipment Industry Cooperative, and Busan Credit Guarantee Foundation at Busan City Hall.

Under this agreement, Busan Bank will make a special contribution of 1.5 billion KRW to the Busan Credit Guarantee Foundation and implement a total of 35 billion KRW in guaranteed loans.

The support targets shipbuilding and marine equipment companies located in the Busan area and DSME partner companies, providing up to 800 million KRW per company regardless of existing guarantee amounts.

The applied interest rate is as low as an annual 2.67% (as of May 10, 2021), and additional interest rate reductions are available when linked with the Bank of Korea’s financial intermediary support funds. The guarantee fee rate is uniformly applied at 0.4% to reduce the financial burden.

Son Dae-jin, Head of Credit Sales at Busan Bank, said, “Through this agreement, we will lay the foundation for the shipbuilding industry, a local base industry, to make a leap forward and actively support stable business activities. Busan Bank will continue to do its best as a reliable partner for small and medium-sized enterprises based in the local community and contribute to revitalizing the regional economy.”

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