Woori Bank said Tuesday it will work with the Korea Credit Guarantee Fund to provide 240 billion won ($2400억원) in financial support to help small and medium-sized businesses weather a crisis.
The bank and the fund signed a business agreement Monday on inclusive financial support to respond to a complex economic downturn. The program is aimed at easing financing burdens for SMEs facing difficulties from a global slowdown and increased volatility in financial markets, while supporting a stable recovery in the real economy.
Woori Bank will contribute a total of 6 billion won ($60억원) to the fund, enabling about 240 billion won in support. Eligible firms include small businesses and vulnerable industries tied to oil and price stabilization; companies involved in supply-chain management, including materials, parts and equipment; businesses directly or indirectly affected by changes in external conditions such as the war in the Middle East; and exporters, importers and companies expanding overseas. Participating firms will receive higher guarantee coverage, raised to 100% from 85%, and support equivalent to 0.7 percentage points of guarantee fees.
Separately, Woori Bank said it signed another agreement with the fund on April 10 to provide 310 billion won ($3100억원) in stage-by-stage financing for innovative-growth sectors and export-leading small and mid-sized companies. The bank said it plans to expand cooperation with policy finance institutions to bolster resilience and growth for small and mid-sized firms.
Woori Bank CEO Jeong Jin-wan said the latest agreement will help improve access to financing for SMEs struggling to raise funds. He said the bank will expand what it called productive finance, in close cooperation with the fund, to support normal operations and sustainable growth for small and mid-sized companies.
* This article has been translated by AI.
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