Busan·Gyeongnam Bank, 1.6 Trillion KRW Special Loans for Local SMEs

[Asia Economy Reporter Kim Min-young] BNK Financial Group's Busan Bank and Gyeongnam Bank announced on the 1st that they will provide a total of 1.6 trillion KRW in 'BNK Prosperous Chuseok Sharing Special Loans' to local small and medium-sized enterprises (SMEs) and small business owners in celebration of the Chuseok holiday.

The two banks will support a total of 1.6 trillion KRW, with 800 billion KRW each per bank (4 trillion KRW in new loans and 4 trillion KRW in loan extensions), from today until the 30th of next month to alleviate financial difficulties faced by local SMEs struggling due to the COVID-19 pandemic and to revitalize the local economy.

The support targets include local startup companies, SMEs with long-term transactions with the two banks, local job-creating companies, companies with excellent technological capabilities, and SMEs engaged in local government strategic industries.

The maximum support amount per company is up to 3 billion KRW, and an additional interest rate reduction of up to 1.0% per annum will be provided to reduce financial costs for local SMEs.

A BNK Financial Group official stated, "We hope this special fund will provide practical help to local merchants facing management difficulties due to the impact of COVID-19," and added, "BNK will continue to contribute to the stabilization of local businesses and the revitalization of the local economy through various financial support programs."