Chungnam Shinbo Signs Financial Support Agreement with Five Banks for SMEs... Expected to Reduce Financial Costs

Chungnam Credit Guarantee Foundation Expands Guarantee Limit per Company to 500 Million KRW
Interest Rate Cap of Up to 4.34% Applied for Companies Using Agreement Guarantees

Chungnam Credit Guarantee Foundation signed a 'Financial Support Agreement for Mutual Growth of SMEs in Chungnam Province' at its headquarters on the 25th with KB Kookmin Bank, NongHyup Bank, Shinhan Bank, Woori Bank, and Hana Bank.

This agreement aims to enhance financial accessibility for local small and medium-sized enterprises (SMEs) and support their management stability.

To alleviate the funding difficulties of SMEs caused by the economic downturn, Chungnam Province expanded the scale of SME development funds to 1.2 trillion KRW this year, and newly established 115 billion KRW as guarantee funds for SMEs.

Accordingly, Chungnam Credit Guarantee Foundation entered into an interest rate cap agreement with major commercial banks to provide financial support at lower interest rates.

Under this agreement, Chungnam Credit Guarantee Foundation will supply guarantees totaling 115 billion KRW, applying a guarantee ratio of at least 95% up to 100%.

Additionally, the guarantee limit per company will be expanded to up to 500 million KRW, supporting smooth funding for businesses.

Banks will apply an additional interest rate of up to 1.5% for full guarantees and up to 2.0% for partial guarantees, based on the CD rate.

In particular, SMEs utilizing the agreement guarantee can benefit from an interest rate cap of up to 4.34% (full guarantee), which is expected to reduce their financial costs.

Through this, the innovation and growth of local SMEs, including those in the manufacturing sector, as well as the competitiveness of corporate-type small businesses in the province, are expected to be strengthened.

Jo Sohaeng, Chairman of Chungnam Credit Guarantee Foundation, said, "We will expand our financial support role so that SMEs can achieve stable growth amid prolonged economic stagnation," and added, "This agreement will contribute not only to reducing financial costs but also to ensuring management stability for businesses."

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