KakaoBank is taking steps to alleviate the financial burden on small businesses in Seoul.
On May 14, KakaoBank announced a special contribution of 10 billion won to the Seoul Credit Guarantee Foundation, which will facilitate a total of 125 billion won in guaranteed loans.
Under this agreement, KakaoBank plans to allocate 62.5 billion won each to two initiatives: the 'Rapid Financial Support' program in collaboration with the Seoul city government and the 'District Economic Support' program working with all 25 districts in Seoul.
The Rapid Financial Support program includes a 'Special Contribution Guarantee' product with a maximum limit of 100 million won and the 'Quick Dream' product, which offers up to 30 million won to small business owners with personal credit scores below 839 (according to NICE standards).
The District Economic Support program aims to provide loans of up to 100 million won to small businesses located in the 25 districts of Seoul. This marks the first instance of an internet-only bank collaborating with all districts in the city.
Based on KakaoBank's special contribution, the Seoul Credit Guarantee Foundation will issue the guarantees, while each district will work to expand support and promote assistance for small businesses in their areas.
A KakaoBank representative stated, "We initiated this agreement to ease the financial burden and enhance convenience for small business owners in Seoul. We will continue to expand financial support for individual entrepreneurs based on innovative financial technology and practice inclusive finance."
* This article has been translated by AI.
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