Shinhan Bank and the Technology Guarantee Fund are launching a financial support initiative worth 200 billion won to assist small and medium-sized enterprises (SMEs) struggling due to geopolitical instability in the Middle East. This measure aims to provide liquidity and reduce financial burdens on companies facing rising oil and raw material prices, as well as increased logistics costs.
On June 26, Shinhan Bank announced that it had signed a memorandum of understanding with the Technology Guarantee Fund for inclusive financial support to help SMEs overcome crises related to the Middle East conflict.
Under this agreement, Shinhan Bank will contribute a total of 4 billion won, including a special contribution of 2.5 billion won and a guarantee fee support of 1.5 billion won. Based on this, the Technology Guarantee Fund will provide guarantees totaling 200 billion won, which includes 50 billion won in special contribution guarantees and 150 billion won in guarantee fee support guarantees.
Companies utilizing the special contribution guarantees can receive a 100% guarantee rate for three years, depending on the type of damage incurred. Additionally, the guarantee fee may be reduced by up to 0.4 percentage points.
Firms using the guarantee fee support can receive up to a 0.5 percentage point reduction in guarantee fees for two years. Depending on the type of company and guarantee product, they may also benefit from expanded guarantee limits and preferential guarantee fees through the Technology Guarantee Fund's special guarantees.
Eligible companies must meet the Technology Guarantee Fund's technical guarantee requirements. This includes exporters to the Middle East or those planning to export who have experienced damages such as contract cancellations or delays in trade payments.
Companies facing difficulties in securing raw materials due to imbalances in oil supply and rising prices are also eligible for support. Firms that have been impacted by rising exchange rates, oil prices, and logistics costs, as well as those recommended by Shinhan Bank due to damages from the Middle East conflict, can apply for assistance.
A Shinhan Bank official stated, "We will continue to collaborate with relevant institutions to support companies facing challenges due to changes in the external environment."
* This article has been translated by AI.
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