Jungjingong and NH Nonghyup Bank Join Hands for Proactive Autonomous Structural Improvement Program

Linking Policy Projects with Financial Institutions... Support for Business Normalization Focused on Structural Improvement
Eligible Targets: Companies with Over 3 Years of Operation and Total Credit Exposure Under 10 Billion KRW

[Asia Economy Reporter Kim Cheol-hyun] The Small and Medium Business Corporation (Chairman Kim Hak-do, hereinafter referred to as SBC) announced on the 30th that it signed a business agreement for a proactive autonomous restructuring program with NH Nonghyup Bank (President Kwon Jun-hak). The agreement was conducted in a non-face-to-face manner by exchanging the agreement documents in writing as part of social distancing measures.

The proactive autonomous restructuring program is a project in which SBC cooperates with private financial institutions to support the restructuring procedures of small and medium-sized enterprises (SMEs) facing management difficulties, helping them quickly normalize management and providing opportunities for a new leap forward.

SBC and NH Nonghyup Bank agreed to actively cooperate to revitalize the proactive autonomous restructuring program and to establish restructuring plans and provide prompt financial support for SMEs facing management difficulties. Specifically, they will work together on ▲ discovering companies eligible for proactive restructuring support ▲ supporting the establishment and implementation of restructuring plans ▲ supporting business restructuring such as business conversion and entry into new businesses ▲ linking support with policy projects such as consulting, export, and sales channels.

SBC will support up to 90% of the costs for establishing restructuring plans, including new fund supply, financial structure improvement, and self-rescue plans, up to a limit of 30 million KRW. NH Nonghyup Bank will recommend target companies and provide comprehensive financial programs such as interest rate reductions and maturity extensions. The support targets are SMEs with a corporate history of over 3 years and a total credit exposure of less than 10 billion KRW.

Choi Hak-su, Head of Innovation Growth Division at SBC, said, "We expect this business agreement with NH Nonghyup Bank to help SMEs struggling due to the prolonged COVID-19 pandemic," adding, "Based on close mutual cooperation with financial institutions, we will support the restructuring procedures in a package form to help SMEs facing management difficulties quickly normalize their management."

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