Gwangju Bank Selected as No.1 Relational Finance Bank by Financial Supervisory Service

[Asia Economy Honam Reporting Headquarters Reporter Park Jin-hyung] Gwangju Bank announced that it was ranked first in the small and medium-sized group among the excellent relational finance banks selected by the Financial Supervisory Service in 2021.

Relational finance is a system in which banks comprehensively evaluate quantitative and qualitative information of small and medium-sized enterprises, and even if their credit rating is low or collateral is insufficient, provide loans for more than three years, equity investment, and management consulting if the business outlook is favorable.

Through this system provided by 17 domestic banks, the handling performance of relational finance in the banking sector increased by more than 2 trillion won last year. According to the Financial Supervisory Service on the 4th, the balance of relational finance of domestic banks at the end of last year was 12.4 trillion won, an increase of 20.8% (2.1 trillion won) compared to the previous year (10.3 trillion won).

Among them, the Financial Supervisory Service classified banks by size into large and small and medium-sized (Gwangju, Jeonbuk, Busan, Daegu, Jeju, Suhyup, Citi, SC, Export-Import) groups, and after evaluating the handling of relational finance, selected Gwangju Bank as first in the small and medium-sized group.

Gwangju Bank was recognized for various efforts to solve financial difficulties of local small and medium-sized enterprises by actively reflecting information obtained from transactions with local SMEs in loan applications, signing business agreements, providing financial support and services in close relationships with customers. The number of business agreements signed and the proportion of loans to low-credit borrowers were also high.

In fact, YBG Tech Co., Ltd. (CEO Yoon Bong-gil), located in the Gwangju Advanced Industrial Complex, succeeded in new orders based on excellent technology shortly after its establishment, but lacked funds for purchasing raw materials due to increased order volume and turned to Gwangju Bank.

As a newly established corporation, it did not meet overall loan requirements such as inferior credit rating and lack of collateral, but since the company possessed excellent technology including patents and had a bright business outlook, a relational finance agreement was signed and funds were provided.

Soon after, when the company faced difficulties again due to flooding damage caused by heavy rains during the summer monsoon season, Gwangju Bank actively appealed the company's damage to related organizations such as government offices and guarantee institutions, and led active support including the issuance of guarantees.

In addition, by providing active financial support through relational finance agreements and introducing facility funds and low-interest policy funds to local small and medium-sized enterprises and small business owners, Gwangju Bank has been taking the lead in resolving financial difficulties of local SMEs and playing the role of a regional financial partner.

Kim Jae-chun, Head of Sales Promotion Department, said, “We feel on the ground that the prolonged COVID-19 pandemic has deepened the regional economic recession and many SMEs and self-employed people are going through difficult days,” adding, “With the sense of mission as the representative bank of Gwangju and Jeonnam, we will do our best to overcome the region’s crisis together by providing financial consultations with sincerity, making prompt decisions, conducting financial support and management consulting, and providing timely funding.”

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