Korea Federation of SMEs, Shinhan Bank, and Korea Federation of Credit Guarantee Foundations Support Yellow Umbrella Mutual Aid Fund Members

Up to 50 Million KRW Guarantee Support
for Yellow Umbrella Mutual Aid Fund Members

The Korea Federation of SMEs announced on May 22, 2025, that, as a follow-up to the "Business Agreement for Expanding Financial Support for SMEs and Small Business Owners" signed with Shinhan Bank last year, it will begin providing agreement-based guarantees for small enterprises and small business owners enrolled in the Yellow Umbrella Mutual Aid Fund, in cooperation with Shinhan Bank and the Korea Federation of Credit Guarantee Foundations.

To support financial assistance for Yellow Umbrella Mutual Aid Fund members, Shinhan Bank will make a special contribution of 1 billion KRW, and the regional credit guarantee foundations will provide credit guarantees totaling 12.5 billion KRW.

Under this agreement-based guarantee, each applicant company can receive a guarantee amount of up to 50 million KRW, with the guarantee limit preferentially increased to 150% and the guarantee fee rate reduced. Applications for the agreement-based guarantee can be submitted at all branches of the regional credit guarantee foundations, and more detailed information is available through the Korea Federation of Credit Guarantee Foundations and the 17 regional credit guarantee foundations.

Kim Ki-moon, Chairman of the Korea Federation of SMEs, stated, "In the face of difficult circumstances such as economic downturn and tariffs imposed by the United States, we hope that this agreement-based guarantee will provide at least some support for the business operations of small enterprises and small business owners enrolled in the Yellow Umbrella Mutual Aid Fund." He added, "We will continue to make efforts to provide various forms of support for Yellow Umbrella Mutual Aid Fund members in the future."

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