Gwangju Bank Provides Special Funding Support for Small and Medium Enterprises Ahead of Seollal Holiday

[Asia Economy Honam Reporting Headquarters Reporter Park Jin-hyung] Gwangju Bank announced on the 5th that it will provide emergency support to local small and medium-sized enterprises (SMEs) facing difficulties in operating funds ahead of the Lunar New Year holiday.

Gwangju Bank stated that it has allocated 300 billion KRW in new funds for the 'Special SME Fund Loan' and will provide emergency support until February 28.

The special fund support was quickly implemented as a livelihood stabilization measure ahead of the Lunar New Year, when demand for funds is concentrated, considering the stagnant local economy due to high interest rates and high prices.

Accordingly, it plans to support local SMEs and small business owners with labor costs, unpaid wages, raw material purchase funds, and emergency payment funds.

In addition, 300 billion KRW of maturity extension funds have been allocated so that loans maturing during this period can be extended upon the borrower's request, except in special cases.

The support limit per company for this Lunar New Year special fund loan is up to 5 billion KRW, and the interest rate will be preferentially reduced by up to 0.70 percentage points (p) compared to the calculated interest rate, which is expected to reduce the financial burden on SMEs and small business owners.

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