Hana Bank is expanding productive finance, including supplying working capital to small and medium-sized enterprises (SMEs) facing growing funding burdens.
Hana Bank signed a "financial support agreement for the mutual prosperity and shared growth of Lotte E&C's partner companies" with Lotte Engineering & Construction and the Korea Credit Guarantee Fund (KODIT) at its headquarters in Jung-gu, central Seoul, the bank said Wednesday. The agreement was arranged to support SMEs struggling to secure funds amid a worsening business environment. Under the arrangement, Hana Bank and Lotte E&C contribute guarantee funds, and KODIT supplies agreement-based guarantees based on these funds.
Hana Bank and Lotte E&C plan to raise a total of 8 billion won in special contributions, with up to 6 billion won and 2 billion won, respectively. Using these funds, KODIT will supply agreement-based guarantees of up to 120 billion won. As a first step, the two companies will contribute a total of 2 billion won, with Hana Bank bearing 1.5 billion won and Lotte E&C 500 million won, and they plan to gradually expand the contribution scale depending on how quickly the funds are depleted. The support targets about 2,000 domestic partner companies recommended by Lotte E&C. Applicant companies can receive working capital of up to 3 billion won per company after screening. Eligible companies are offered preferential benefits, including a 100% guarantee ratio, a 0.3 percentage point reduction in guarantee fees, and lower lending rates.
Hana Bank is also providing financial support for Lotte E&C executives, employees, and partner companies. It plans to enhance financial convenience through preferential interest rates on financial products, asset management consulting, education and counseling services, and support for managing partner companies' defined contribution (DC) retirement pensions.
"We will supply liquidity to SMEs in a timely manner and support them in receiving practical financial benefits," Hana Bank President Lee Ho-sung said. "We will continue to participate in mutual prosperity and shared growth with small and medium-sized partner companies and build a sustainable financial cooperation system."
