Daegu Bank Announces 1.6 Trillion Won 'Win-Win Financial Support Plan'

Individual Vehicle Owners 990 Billion, Small Business Owners and SMEs 647 Billion

DGB Daegu Bank has decided to provide financial support worth approximately 1.6 trillion KRW to assist low-income earners, small business owners, and small and medium-sized enterprises (SMEs).

On the morning of the 3rd, Daegu Bank announced this comprehensive win-win financial support plan at its headquarters in Suseong-gu, Daegu, during a meeting attended by Lee Bok-hyun, Governor of the Financial Supervisory Service, Hwang Byung-woo, President of Daegu Bank, and others.

The comprehensive support plan for low-income finance, announced with the goal of "serving as a strong pillar for the local economy," consists of personal borrower support (990 billion KRW), financial support for small business owners and SMEs (647 billion KRW), as well as non-financial support such as expanded management consulting and improved financial accessibility.

First, Daegu Bank will significantly expand the support scale of the representative low-income financial product, "Hetsalron Bank," from 16.7 billion KRW last year to 300 billion KRW this year. The new interest rate will also be lowered by 0.5 percentage points.

The "New Hope Loan" aims to provide 100 billion KRW in financial support this year, and following last year's 0.5 percentage point interest reduction, the new interest rate will be further lowered by 0.5 percentage points. This includes the first-ever full exemption of early repayment fees on household loans for low-credit personal borrowers with credit ratings below grade 7 at a regional bank, and a maximum 1.0 percentage point reduction in household credit loan interest rates.

This personal borrower support will be implemented on a total scale of 990 billion KRW, expected to reduce financial costs by approximately 8 billion KRW.

Financial support for small business owners and SMEs, totaling 647 billion KRW, is expected to reduce costs by about 24.6 billion KRW. Daegu Bank plans to assist local small business owners and SMEs with liquidity issues through a special contribution of 240 billion KRW to the Regional Credit Guarantee Foundation, and to reduce financial costs by about 3 billion KRW by launching a 300 billion KRW low-interest facility loan conversion product.

Additionally, for borrowers with matured loans under the "Special Loan for Small Business Owners," a low interest rate in the 4.5% range will be supported when converting to installment repayment. The win-win fund in cooperation with local governments and public institutions will be operated at a scale of 92 billion KRW, an increase of 20 billion KRW compared to the previous year. Furthermore, Daegu Bank will continue various support programs such as the DGB Hope Sharing Debt Reduction Program, which reduces up to 90% of long-term unpaid debts, helping financially marginalized groups to recover.

Non-financial support will also be implemented simultaneously. Daegu Bank will continue consulting projects to stabilize management and support growth for small business owners and SMEs, extend business hours (9 AM to 6 PM), expand mobile branch operations, and operate senior-specialized branches.

President Hwang said, "As a responsibility of a regional representative bank, this comprehensive plan to expand win-win finance was established to accompany local residents and overcome the local economic crisis. We hope that the practical benefits of support will be evenly distributed throughout the community." He added, "Going forward, DGB Daegu Bank will continue to actively practice warm finance that carefully embraces financially marginalized groups and strive to become a regional representative bank that leads the co-growth of the local community."

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