A Total of 7.3 Trillion KRW... BNK Busan Bank and Busan City Sign Business Agreement for the 'Economic Crisis Overcoming Donghaeng (同行) Project'

Officials from Busan Bank, Busan City, and the City Council are taking a group commemorative photo after signing the agreement.

[Asia Economy Yeongnam Reporting Headquarters Reporter Hwang Du-yeol] BNK Busan Bank and Busan City have joined forces to launch a project aimed at supporting ordinary citizens, small business owners, and vulnerable groups who are struggling due to interest rate hikes, rising prices, and the prolonged COVID-19 pandemic.

On the 2nd, Busan Bank signed a business agreement with the city at Busan City Hall for the ‘Economic Crisis Overcoming Coexistence (同行) Project’ (Coexistence Project), a three-year initiative worth a total of 7.3 trillion KRW to practice win-win management.

Through this agreement, Busan Bank plans to fulfill its social responsibility as a regional bank by reducing the financial burden on self-employed individuals and vulnerable groups and helping them achieve a stable soft landing, coinciding with the expected end of COVID-19 financial support by the end of September.

The Coexistence Project is divided into three programs for customized financial support: ▲Support for Ordinary Citizens’ Finance ▲Support for Vulnerable Groups ▲Support for Recovery.

It will supply 2.62 trillion KRW focused on liquidity to assist borrowers’ smooth economic activities under ‘Support for Ordinary Citizens’ Finance,’ 3.925 trillion KRW for reducing financial costs of existing loans under ‘Support for Vulnerable Groups,’ and 793 billion KRW for providing opportunities to recover under ‘Support for Recovery.’

First, in collaboration with Busan City, the project will offer interest-free jeonse (long-term deposit lease) loans worth 400 billion KRW annually to reduce housing costs for youth and newlyweds, and support 150 billion KRW in preferential interest rate credit loans for franchise business operators.

It will also support programs such as overdue interest reduction for companies affected by COVID-19, special guarantee loans worth 1 trillion KRW for small business owners and self-employed individuals, and up to 1% interest rate reductions for vulnerable groups holding high-interest loans above 7%, providing specialized financial support unique to Busan Bank to help normalize finances for vulnerable local groups.

A debt relief program worth a total of 30 billion KRW over three years will be implemented for socially vulnerable groups, including elderly people aged 70 and above with weak debt repayment ability, basic livelihood security recipients, and the near-poor including persons with disabilities, to support their recovery.

Additionally, various financial supports will be provided, such as launching credit loans for Dongbaekjeon franchise business operators and individual users, special guarantee loans for small business owners and self-employed individuals, and the release of the Busan Youth Double Joy Account to establish a foundation for youth independence.

Bank President An Gam-chan of Busan Bank said, “I hope this project with Busan City will provide some support to ordinary citizens and vulnerable groups struggling due to COVID-19 and other difficulties,” adding, “We will regularly check the project’s progress after the agreement to support its smooth implementation and fulfill our role as a leading regional financial institution.”

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