Busan Bank Provides Financial Support to Boost M&A Activities for Busan SMEs

Business Agreement Signed with Busan City, Regional Office of SMEs, Chamber of Commerce, and Korea Technology Finance Corporation

200 Billion Won in Guarantee-Backed Loans for Busan SMEs

BNK Busan Bank announced on the 19th that it has signed a "Business Agreement to Promote Mergers and Acquisitions (M&A) for the Sustainable Management of Small and Medium-Sized Enterprises (SMEs) in Busan" with Busan Metropolitan City, Busan Regional Office of SMEs and Startups, Busan Chamber of Commerce and Industry, and Korea Technology Finance Corporation.

Busan Bank explained that this agreement was established to build a virtuous cycle in the local venture ecosystem, encompassing startup, growth, M&A, and re-startup, and to support the sustainable growth of SMEs in Busan.

The participating organizations have agreed to cooperate in various areas, including financial support, company discovery, and institutional promotion, to vitalize M&A activities among local SMEs.

Busan Bank will make a special contribution of 1 billion won to Korea Technology Finance Corporation and, based on this, plans to provide guarantee-backed loans totaling 20 billion won to SMEs headquartered or mainly operating in Busan.

Busan Metropolitan City will use the interest subsidy system to ease financial burdens for companies, while Korea Technology Finance Corporation will use the special contribution to provide credit guarantees. The Busan Regional Office of SMEs and Startups and the Busan Chamber of Commerce and Industry will be responsible for promoting the financial support program to local companies and discovering potential beneficiary firms.

The support targets are acquiring companies pursuing M&A that meet the technology guarantee requirements of Korea Technology Finance Corporation. These companies will be eligible for preferential financial benefits, including working capital and facility funds, application of a 100% guarantee ratio for three years, and a 0.3 percentage point reduction in guarantee fees.

Kim Youngjun, Head of Corporate Customer Group at Busan Bank, stated, "This agreement marks the first step for the public and private sectors to jointly create a virtuous cycle in the local venture ecosystem," and added, "Busan Bank will continue to expand financial support as a growth partner for innovative local companies."

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