Hana Bank is set to provide 50 billion won (approximately $42 million) in financial support to domestic import companies facing challenges in securing funding due to high interest rates and exchange rates.
On July 20, Hana Bank announced that it has signed a financial support agreement with the Korea Importers Association and the Korea Technology Finance Corporation (KIBO) to assist in stabilizing and growing import businesses.
This agreement aims to alleviate the financial burden on companies that have seen increased costs for importing raw materials and components due to global supply chain uncertainties and the depreciation of the Korean won.
Initially, Hana Bank will contribute 700 million won to KIBO, which will use these funds to provide a total of 50 billion won in guarantee support. The beneficiaries will be regular members of the Korea Importers Association that meet KIBO's technology guarantee requirements. The Korea Importers Association will recommend eligible companies, which will then undergo KIBO's evaluation process for guarantee support.
Eligible companies will receive a 0.7 percentage point reduction in guarantee fees for up to two years. Additional benefits will include preferential loan rates and reduced foreign exchange fees to help lower financial costs.
Lee Jeong-hyun, Executive Director of Hana Bank's Foreign Exchange Business Division, stated, "Import companies play a crucial role in supplying raw materials and components to domestic industries, contributing to the stability of the global supply chain. We will continue to expand support programs that can reduce the financial burden on import and export companies."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.