Icheon-si and IBK Industrial Bank Sign Agreement for 'Small Business Partnership Support Project'

3.2% Financial Support Including Interest and Guarantee Fees for SMEs

On the 29th, Icheon City in Gyeonggi Province announced that it signed a business agreement with IBK Industrial Bank of Korea to provide management fund loans for small and medium-sized enterprises (SMEs) in the area. About 20 people, including Kim Kyung-hee, Mayor of Icheon, and Choi Kwang-jin, Vice President of IBK Industrial Bank of Korea, attended the signing ceremony.

Kim Kyung-hee, Mayor of Icheon (left), and Choi Kwang-jin, Vice President of IBK Industrial Bank, are holding up the 'Support for Small and Medium Enterprises' business agreement. Photo by Icheon City

Through this agreement, linked with Icheon City's special management fund support project for SMEs that provides a 2% subsidy on existing loan interest, IBK Industrial Bank of Korea and guarantee institutions (Korea Credit Guarantee Fund, Korea Technology Finance Corporation, Gyeonggi Credit Guarantee Foundation) will provide additional financial support of up to 1.2% through guarantee fee support and reductions. The city plans to create a total loan fund of 30 billion KRW over three years with IBK Industrial Bank of Korea through this agreement.

The guarantee fee support project under this agreement will be implemented starting from the 1st of next month. For more details, inquiries can be made to the Corporate Support Team of the Corporate Economy Division at Icheon City Hall. The city plans to analyze the responses of companies and the effects on the local economy and consider expanding the subsidy fund in the future.

Mayor Kim said, "I am pleased that through this agreement, we can provide low-interest working capital to SMEs struggling due to high interest rates and economic slowdown," and expressed hope that "this support will play a key role in reducing financial costs for SMEs."

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