Bank of Korea Gwangju-Jeonnam Branch to Provide Special Funds for Chuseok Holiday

Support Limit Set at 500 Million Won per Company

The Gwangju-Jeonnam Branch of the Bank of Korea announced on August 25 that it will provide special funds for the Chuseok holiday to support smooth financing for small and medium-sized enterprises (SMEs) and self-employed individuals in the Gwangju and Jeonnam regions.

The total support amount is 30 billion won, with a maximum of up to 60 billion won based on the amount of loans handled by financial institutions. The support limit per company is 500 million won (up to 1 billion won based on the amount of loans handled by financial institutions).

This funding support will be available from September 1 to September 30, and the eligible targets are loans extended by local financial institutions (banks) to companies located within the jurisdiction of the Gwangju-Jeonnam Branch of the Bank of Korea during this period.

However, companies in industries such as real estate, entertainment, retail of pharmaceuticals and medical supplies, and veterinary services, as well as high-credit companies with a credit rating of 1 to 3, are excluded from support.

As for the details of the support, the Bank of Korea will provide financial institutions with low-interest funding (at an annual rate of 1.00% in August) for a portion (up to 50%, allocated proportionally) of working capital loans with maturities of up to one year that are handled by financial institutions during the support period.

An official from the Gwangju-Jeonnam Branch of the Bank of Korea stated, "We expect this measure to help improve the financial situation of local SMEs and self-employed individuals who are facing difficulties in paying employee wages and settling raw material payments ahead of the Chuseok holiday."

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