Jeon Hyun-hee, a member of the National Assembly's Political Affairs Committee, announced on November 5 that KB Kookmin Bank will participate in the 'Youth Startup Hope Ladder Financial Support' program, which she is promoting in collaboration with the National Financial Industry Labor Union.
On this day, Jeon attended a memorandum of understanding (MOU) signing ceremony at KB Kookmin Bank's headquarters in Yeouido, Seoul, alongside KB Kookmin Bank President Lee Hwan-joo, Credit Guarantee Fund Chairman Kang Seung-jun, and Technology Guarantee Fund Executive Director Jang Jin-yeop.
The agreement aims to expand financial support for young entrepreneurs who possess innovative ideas and excellent technology but face challenges in securing funding due to a lack of collateral or low credit ratings. It emphasizes collaboration between the financial sector and policy financial institutions to support young people's entrepreneurial endeavors and create new jobs.
Jeon's office highlighted the significance of this initiative as a practical example of productive finance, which aims to shift financial resources away from traditional collateral-based lending practices focused on real estate, towards innovative companies and future growth drivers. It also represents an effort to broaden opportunities for financially marginalized groups.
KB Kookmin Bank will contribute 5 billion won to both the Credit Guarantee Fund and the Technology Guarantee Fund, totaling 11.8 billion won. This funding will help establish a loan fund of 200 billion won for youth startups.
The program targets individuals under 39 years old who are representatives of companies established within the last seven years. Notably, it eliminates the burden of providing collateral and offers loans without guarantee fees at interest rates in the 3% range, thereby reducing the cost of financing.
This initiative is expected to serve as a practical financial safety net for young entrepreneurs who have struggled to access traditional financial services due to collateral or credit issues.
Jeon expressed gratitude to KB Kookmin Bank, the Credit Guarantee Fund, the Technology Guarantee Fund, and the financial union for their commitment to implementing productive and inclusive finance. She stated, "Lowering the barriers to finance is the starting point for enabling anyone to challenge themselves with their potential and ideas. I hope this initiative becomes a ladder of new opportunities for more young people, and that participation and support from the financial sector will continue to grow."
Meanwhile, the Youth Startup Hope Ladder Financial Support program, initiated by Jeon, has now seen participation from KB Kookmin Bank, following Hana Bank and Woori Bank. The total loan fund for youth startup financial support created by the three participating banks has expanded to 600 billion won.
* This article has been translated by AI.
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