Hana Bank Launches $2.3 Billion 'Small Business Safe Account 4'

Hana Bank is lowering financial support barriers for struggling small businesses and individual entrepreneurs as part of its inclusive finance initiative.

On September 2, Hana Bank announced that it will launch the 'Seoul Small Business Safe Account 4' in collaboration with the Seoul Metropolitan Government and the Seoul Credit Guarantee Foundation, with a total scale of 300 billion won (approximately $2.3 billion) on September 3.

The Seoul Small Business Safe Account is a dedicated overdraft account for self-employed individuals, aimed at preventing them from being pushed into illegal money lending due to difficulties accessing formal financial services. This program has been in operation since last year.

With the launch of the fourth account, the support limit will increase from the previous 10 million won to 20 million won. The support criteria will also be refined into three tiers based on business duration, credit score, and revenue. Existing users of Safe Accounts 1 to 3 can apply for additional funds within the remaining guarantee balance if they meet the eligibility requirements.

Hana Bank will also support 50% of the guarantee fees incurred when signing new loan agreements. The loan term can be extended for up to five years, with the initial period set at one year, and all fees related to limit agreements and unused limit agreements will be fully waived. This is expected to significantly reduce the financial burden for small businesses needing to secure liquidity.

Applications for guarantee certificates will be accepted starting at 9 a.m. on September 3 through the Seoul Credit Guarantee Foundation's mobile app. The first five business days will operate on a birth year ending system: September 3 for those born in years ending in 1 or 6, September 4 for 2 or 7, September 7 for 3 or 8, September 8 for 4 or 9, and September 9 for 5 or 0. From September 10, applications will be accepted regardless of birth year.

Seo Yu-seok, Deputy Head of Hana Bank's Corporate Group, stated, "We will continue to expand tailored inclusive finance support to help small businesses overcome management crises and revitalize the local economy."