Gyeongnam Nuclear Company Receives Annual 50 Billion KRW Loan and Up to 3%P Interest Support

NH Nonghyup Bank·BNK Gyeongnam Bank·Korea Technology Finance Corporation Business Agreement

Gyeongsangnam-do, NH Nonghyup Bank, BNK Gyeongnam Bank, and the Korea Technology Finance Corporation have signed a business agreement to support the growth of companies in the nuclear industry sector within the province.
[Image source=Gyeongnam Provincial Government]

[Asia Economy Yeongnam Reporting Headquarters Reporter Lee Seryeong] On the 27th, Gyeongsangnam-do signed a financial support business agreement with financial institutions in the province to foster the nuclear power industry in Gyeongnam.

On this day, Gyeongsangnam-do, NH Nonghyup Bank, BNK Gyeongnam Bank, and Korea Technology Finance Corporation joined hands to support the growth of companies in the nuclear power industry sector within the province.

The signing ceremony was attended by Kim Byung-gyu, Deputy Governor for Economic Affairs, Heo Yoon-seok, Head of the Gyeongnam-Ulsan Regional Headquarters of Korea Technology Finance Corporation, Jung Yoon-man, Head of Credit Sales Headquarters at BNK Gyeongnam Bank, and Jung Young-cheol, Head of Gyeongnam Sales Department at NH Nonghyup Bank.

According to the agreement, Gyeongsangnam-do will establish a special fund of 50 billion KRW annually for small and medium enterprise development funds, providing companies with up to 2 percentage points of interest rate differential compensation (partial compensation of loan interest).

Nonghyup Bank and Gyeongnam Bank will offer up to 1 percentage point preferential interest rates and will each contribute 250 million KRW, totaling up to 500 million KRW, as special contributions to Korea Technology Finance Corporation.

Korea Technology Finance Corporation will utilize the special contributions from the two banks to create a guarantee product worth 10 billion KRW, which is 20 times the contribution amount.

According to the province, support will be targeted at small and venture companies located in Gyeongnam within the nuclear power industry sector.

Eligible companies must meet at least one of the following criteria: holding a qualified supplier registration certificate in the nuclear power field; possessing domestic or international nuclear power-related certifications; recognized as a nuclear power sector partner by Korea Hydro & Nuclear Power or Doosan Enerbility; or recognized as a nuclear power company by the Nuclear Power Rapid Support Center.

Selected companies will be provided with up to 2 billion KRW for operating funds and 5 billion KRW for facility funds per company.

The agreement guarantee applies only to operating funds, with a maximum of 2 billion KRW for up to three years, a 100% guarantee ratio, and a minimum 0.2 percentage point reduction in guarantee fees.

Both operating and facility funds can receive up to 3 percentage points of loan interest support, combining Gyeongsangnam-do’s 2 percentage points of interest rate differential compensation and 1 percentage point preferential interest rate from banks; however, the bank preferential interest rate is only available at Nonghyup Bank and Gyeongnam Bank.

Loans will be handled at branches of 14 financial institutions operating within the province, including Nonghyup Bank, Gyeongnam Bank, IBK Industrial Bank, BNK Busan Bank, KB Kookmin Bank, Woori Bank, Shinhan Bank, KEB Hana Bank, SC First Bank, KDB Industrial Bank, DGB Daegu Bank, Sh Suhyup Bank, Saemaeul Geumgo, and Credit Cooperatives.

Each company must first apply for loan consultation and processing at one of the 14 financial institutions, and if a guarantee is required based on the consultation results, they must apply to Korea Technology Finance Corporation to obtain a guarantee certificate.

Afterward, the financial institution applies for small and medium enterprise development fund support from the Gyeongsangnam-do Investment & Economic Promotion Agency and upon approval, loan execution and interest rate differential compensation proceed.

Loan applications can be submitted starting January 2nd next year at branches of the 14 financial institutions in the province, and the agreement guarantee is planned to be implemented within January.

Deputy Governor Kim said, “When meeting with nuclear power sector entrepreneurs on site, the biggest difficulty they always face is securing funds,” adding, “We will actively work together with related organizations to support nuclear power companies financially and resolve their difficulties.”

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