On September 23, Jeon Hyun-hee, a member of the National Assembly's Political Affairs Committee from the Democratic Party, signed a memorandum of understanding (MOU) with Woori Bank, the Korea Credit Guarantee Fund, and the Korea Technology Finance Corporation to provide 200 billion won in financial support for youth startups.
The MOU aims to enhance financial accessibility for youth startups facing difficulties in securing funding due to credit shortages. Under this agreement, banks will contribute funds to public guarantee institutions, which will then provide guarantees to youth startups based on these contributions.
Woori Bank will provide a special contribution of approximately 11.8 billion won and guarantee fee support to the credit guarantee institutions, which will enable them to offer a total of 200 billion won in guarantees to youth startups. These startups will benefit from financial incentives, including guarantee fee support, exemption from financial service fees, and preferential interest rates.
This MOU mirrors an agreement Jeon signed last month with Hana Bank, the Korea Credit Guarantee Fund, and the Korea Technology Finance Corporation. Jeon emphasized the significance of Woori Bank's participation in expanding the financial support model to other commercial banks, increasing the total financial support from 200 billion won to 400 billion won.
Jeon noted that her proposal to alleviate the challenges faced by young entrepreneurs has led to the launch of financial products and the involvement of additional commercial banks, marking a significant step toward a public-private partnership model for youth startup financial support across the financial sector.
"I will continue to work closely with financial authorities, the financial sector, and guarantee institutions to attract more participation from commercial banks," Jeon said. "We will strengthen the financial support system so that young people can pursue their entrepreneurial dreams without financial worries."
The MOU aims to enhance financial accessibility for youth startups facing difficulties in securing funding due to credit shortages. Under this agreement, banks will contribute funds to public guarantee institutions, which will then provide guarantees to youth startups based on these contributions.
Woori Bank will provide a special contribution of approximately 11.8 billion won and guarantee fee support to the credit guarantee institutions, which will enable them to offer a total of 200 billion won in guarantees to youth startups. These startups will benefit from financial incentives, including guarantee fee support, exemption from financial service fees, and preferential interest rates.
This MOU mirrors an agreement Jeon signed last month with Hana Bank, the Korea Credit Guarantee Fund, and the Korea Technology Finance Corporation. Jeon emphasized the significance of Woori Bank's participation in expanding the financial support model to other commercial banks, increasing the total financial support from 200 billion won to 400 billion won.
Jeon noted that her proposal to alleviate the challenges faced by young entrepreneurs has led to the launch of financial products and the involvement of additional commercial banks, marking a significant step toward a public-private partnership model for youth startup financial support across the financial sector.
"I will continue to work closely with financial authorities, the financial sector, and guarantee institutions to attract more participation from commercial banks," Jeon said. "We will strengthen the financial support system so that young people can pursue their entrepreneurial dreams without financial worries."
* This article has been translated by AI.
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