IBK Industrial Bank Implements 1.5 Trillion KRW Support Program for SMEs
Facility Investment Promotion Funds and Credit Loans
[Asia Economy Reporter Jin-ho Kim] IBK Industrial Bank announced on the 28th that it will implement the ‘COVID-19 Overcoming Small and Medium Enterprise Support Program’ to support companies temporarily facing difficulties due to COVID-19 and to promote the growth of innovative companies.
The support program consists of three main measures: ▲support for facility investment promotion for ‘innovative and startup companies,’ ▲full credit loans for ‘growth-potential companies,’ and ▲financial safety net support for ‘companies facing temporary liquidity crises.’
Specifically, innovative and startup companies will be supported with a 500 billion KRW scale ‘Facility Investment Promotion Loan’ that minimizes the initial financial burden when investing in facilities to strengthen corporate competitiveness. Customers who receive the Facility Investment Promotion Loan will pay interest at the base rate level excluding the additional interest rate during the period when no sales occur after the facility investment (up to 1 year). The deferred additional interest can be paid in installments starting from the second year when sales begin, reducing the initial interest burden on customers.
Growth-potential companies that meet certain requirements will be provided with full credit loans totaling 1 trillion KRW. Moving away from the past financial performance-based evaluation method, loans will be supported to promising companies lacking collateral through assessments using big data and other dynamic corporate information.
Additionally, companies whose credit ratings have dropped due to temporary liquidity crises will receive customized support through the ‘Financial Safety Net Support’ to minimize interest rate increases and maintain credit limits and preferential conditions.
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An IBK Industrial Bank official stated, “IBK will continue to support small and medium enterprises in overcoming the COVID-19 crisis and provide customized financial support to companies with high growth potential.”
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