Kwangju Bank to Provide 600 Billion KRW in Special Funds for SMEs During Lunar New Year

by Min Chanki

Published 08 Jan.2025 14:25(KST)

Updated 28 Jul.2025 08:47(KST)

Unpaid Wages, Raw Material Purchases, etc... Up to 3 Billion Won Per Company

Gwangju Bank is launching a total of 600 billion won in "Seol Holiday Special Funds for Small and Medium Enterprises" to support local small and medium-sized enterprises and small business owners facing difficulties in funding demand ahead of the Lunar New Year. Photo by Gwangju Bank

Gwangju Bank (President Ko Byungil) announced on the 8th that it will provide a total of 600 billion KRW in "Lunar New Year Special Funds for SMEs" to support local small and medium-sized enterprises (SMEs) and small business owners experiencing financial difficulties ahead of the holiday.

This special fund has been organized to inject vitality into the local economy, which has been losing momentum due to the prolonged economic downturn. The bank plans to promptly respond to companies' requests for wage payments, overdue wage settlements, raw material purchases, and emergency payments.

The total support scale consists of 300 billion KRW in new funds and 300 billion KRW in maturity extensions. The maximum support limit per company is up to 3 billion KRW. For new funds, the bank will provide a preferential rate of up to 1.5 percentage points per annum compared to the calculated interest rate, which is expected to reduce the financial burden on SMEs and small business owners.

Woo Sunghee, Head of the Credit Strategy Department, said, "We hope that this special fund loan for the Lunar New Year will provide practical help in resolving the financial difficulties of local SMEs and small business owners," adding, "We will continue to provide prompt financial support so that local residents can use it effectively whenever they need it."