Hana Bank Contributes 2 Billion Won to KOTEC... Supports SMEs Pursuing Business Succession and M&A

Hana Bank announced on May 11 that it will provide a total contribution of 2 billion won to the Korea Technology Finance Corporation and support small and medium-sized enterprises (SMEs) pursuing business succession and mergers and acquisitions (M&A).

Hana Bank signed a financial support agreement with the Korea Technology Finance Corporation on the 7th at the Seoul office of the Korea Technology Finance Corporation in Yeongdeungpo-gu, Seoul, to promote business succession and technological innovation. After the signing, (from left) Lee Sangchang, Director of the Korea Technology Finance Corporation, and Seo Yuseok, Vice President of the Corporate Group at Hana Bank, posed for a commemorative photo. Provided by Hana Bank

In this context, Hana Bank signed a financial support business agreement at the Korea Technology Finance Corporation's Seoul office on May 7 to assist SMEs with smooth generational transition and technological innovation.

This agreement was established to address the challenges faced by SMEs in business succession due to aging and to support the scaling up of technology-driven companies through M&A.

To begin with, Hana Bank will contribute 1.5 billion won as a special fund and 500 million won as a guarantee fee support fund, totaling 2 billion won, to the Korea Technology Finance Corporation. Using this as a source of funds, the Korea Technology Finance Corporation will provide agreement-based guarantees totaling 65.7 billion won (3 billion won for special contributions and 35.7 billion won for guarantee fee support).

The support targets are acquiring companies that are pursuing business succession and M&A. These companies will receive working capital and facility funds. Eligible companies can benefit from special advantages such as ▲guarantee coverage up to 100% ▲and a guarantee fee reduction of up to 0.7 percentage points.

Yooseok Seo, Executive Vice President of the Corporate Group at Hana Bank, stated, "This agreement was designed to provide SMEs facing funding difficulties with growth momentum for smooth business succession and the promotion of technological innovation through revitalization of M&A," and added, "We will continue to fully support SMEs in achieving seamless business succession and technological innovation."

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