The Chungnam Credit Guarantee Foundation announced that it signed a "Chungcheongnam-do SME Mutual Growth Guarantee Support Agreement" with six financial institutions at its headquarters on Friday to boost the Chungnam economy and foster local small and medium-sized enterprises.
KB Kookmin Bank, NongHyup Bank, Shinhan Bank, Woori Bank, KakaoBank and Hana Bank participated in the agreement.
The partnership aims to nurture regional anchor companies by providing financial support to SMEs in manufacturing and other sectors with growth potential and technological capabilities in Chungcheongnam-do Province. The initiative is designed to support regional economic recovery and strengthen a virtuous cycle of growth.
The Chungnam Credit Guarantee Foundation will provide credit guarantees totaling 115 billion won for SMEs and small business owners in the province. Each participating bank will offer loans with an interest rate cap of CD (91-day) + 1.9%, a reduction of 0.1 percentage point from the previous year.
Guarantees of up to 500 million won per company will be available to manufacturing SMEs operating in Chungnam. Eligibility restrictions have been eased so that companies that recently used guarantee services can also benefit.
KakaoBank's participation as a new partner is expected to enhance the program's effectiveness by improving access for young entrepreneurs and other businesses accustomed to non-face-to-face banking systems.
"I would like to express my gratitude to each financial institution for coming together for the sake of companies in the province," Chungnam Credit Guarantee Foundation Chairman Cho So-haeng said. "Based on this mutual growth finance agreement with financial institutions, we will accelerate prompt guarantee support for the growth of Chungnam's manufacturing sector and SMEs."
Applications for the mutual growth guarantee can be submitted through the Chungnam Credit Guarantee Foundation's guarantee support platform app "Bojeung Dream" or through branch offices in the jurisdiction of the applicant's business location.
