Busan Savings Bank Launches Guaranteed Loans... New Guarantee Limit Set at 30 Million Won

Jae-sik Park, President of the Korea Federation of Savings Banks (left), and Seung-mo Kim, Chairman of the Busan Credit Guarantee Foundation, are posing for a commemorative photo after signing a business agreement for guarantee cooperation on the 2nd. Photo by Korea Federation of Savings Banks

[Asia Economy Reporter Song Seung-seop] The Korea Federation of Savings Banks announced on the 2nd that it has signed a "Business Agreement for Savings Bank Contribution Funded Guarantee" to support funds for small and medium-sized merchants struggling due to COVID-19.

The agreement involved three savings banks in Busan (IBK, BNK, Goryeo) and the Busan Credit Guarantee Foundation. This is the second agreement with a regional credit guarantee foundation following the business agreement with the Seoul Credit Guarantee Foundation in November last year.

The signing ceremony was attended by eight people, including Park Jae-sik, Chairman of the Korea Federation of Savings Banks; Kim Seung-mo, Chairman of the Busan Credit Guarantee Foundation; Park Ki-kwon, Head of the Savings Bank Busan Branch; Seo Jeong-hak, CEO of IBK Savings Bank; Seong Myeong-hwan, CEO of BNK Savings Bank; and Lee Jong-su, CEO of Goryeo Savings Bank.

The guarantee agreement uses 2.5 billion KRW funded by special contributions from the three companies. The Busan Credit Guarantee Foundation will provide guarantees worth 30 billion KRW, which is 12 times the fund size.

Additionally, the Busan Credit Guarantee Foundation and the savings banks have removed credit score and business duration restrictions and expanded the support targets to maximize assistance for small and medium-sized merchants struggling due to COVID-19.

To enable faster financial support, applicants will be able to submit their applications in a one-stop manner at savings bank counters without visiting the main or branch offices of the Busan Credit Guarantee Foundation. There are no credit score restrictions, and the new guarantee limit is 30 million KRW. For existing guarantee holders, the maximum is 100 million KRW including the guarantee balance. Guarantees cover up to 95% of the loan amount, with a loan period of up to 5 years. Interest rates will be set between 5.5% and 7.5% annually, which is lower than the existing policy product, Savings Bank Haetsal Loan.

Park Jae-sik, Chairman of the Korea Federation of Savings Banks, emphasized, "The agreement is a guarantee agreement in the form of a special contribution by savings banks," adding, "It will serve as a catalyst for supplying medium- and low-interest loan products for small and medium-sized merchants."

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