HUG Supports SMEs with Low-Interest Loans Worth 20 Billion Won

On the 8th, Lee Byung-hoon, Vice President of Housing and Urban Guarantee Corporation (left), and Choi Kwang-jin, Vice President of IBK Industrial Bank of Korea (right), are posing for a commemorative photo after signing an agreement at the IBK Finance Tower in Seoul. (Photo by HUG)

[Asia Economy Reporter Ryu Tae-min] On the 11th, the Housing and Urban Guarantee Corporation (HUG) announced that it signed a 'Business Agreement for Supporting ESG Management of Small and Medium Enterprises and Win-Win Cooperation' with IBK Industrial Bank of Korea at IBK Finance Tower in Euljiro, Jung-gu, Seoul on the 8th.

Through this business agreement, HUG will deposit 10 billion KRW interest-free with IBK Industrial Bank of Korea, which will use it as a basis to create a 20 billion KRW fund.

IBK Industrial Bank of Korea will lend funds to small and medium enterprises pursuing ESG (Environmental, Social, and Governance) management at an interest rate 1.80 percentage points (p) lower than the market rate, using the interest resources payable to HUG. Depending on credit ratings, the borrowing companies can receive an additional interest rate reduction benefit of 1.40 p, so the final interest burden is expected to decrease by up to 3.20 p.

The support targets are ▲small and medium enterprises pursuing ESG management such as eco-friendly, social responsibility fulfillment, and excellent governance certification ▲small and medium enterprises affected by COVID-19 ▲small and medium housing construction companies.

The loan period is on a one-year basis, and each company can borrow up to 500 million KRW. Loan applications will be announced at IBK Industrial Bank of Korea branches starting next month and will be supported after screening.

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