NH NongHyup Bank, Korea Credit Guarantee Fund sign W383b productive finance MOU

NH NongHyup Bank said Wednesday it signed two MOUs with the Korea Credit Guarantee Fund — one on expanding productive finance and supporting growth recovery, and another on region-specific productive finance and growth recovery support.

The agreements strengthen financial support for regional hub companies and firms outside the Greater Seoul area by running the productive finance expansion and region-specific tracks separately. The initiative aims to boost the competitiveness of high-growth-potential companies and promote balanced regional economic development.

Under the productive finance MOU, NH NongHyup Bank will contribute a total of 5 billion won — comprising a special contribution of 3.5 billion won and a guarantee fee subsidy of 1.5 billion won ($1.02 million) — and supply 220 billion won in agreement-based guarantees. The Korea Credit Guarantee Fund will offer preferential benefits including a 100 percent guarantee ratio for three years, a 0.2 percentage point reduction in guarantee fees for three years, and a 0.5 percentage point fee subsidy for two years.

Eligible recipients include companies in new growth engine industries, promising startups, export and overseas-expansion companies, job-creating companies and venture companies.

Under the region-specific MOU, NH NongHyup Bank will contribute a total of 5 billion won — a special contribution of 4 billion won and a guarantee fee subsidy of 1 billion won — and supply 163 billion won in agreement-based guarantees. The Korea Credit Guarantee Fund will provide benefits including a 100 percent guarantee ratio for three years, a reduction of up to 0.3 percentage points in guarantee fees for three years, and a 0.6 percentage point fee subsidy for two years.

Additional eligible recipients under this agreement include companies in region-based industries, small and medium-sized enterprises that have relocated outside the Greater Seoul area, and companies investing in those regions.

"We will do our utmost to actively participate in the government's productive finance policy, continuously expand financial support for high-growth-potential and regional companies, and contribute to strengthening corporate competitiveness and revitalizing local economies," an NH NongHyup Bank official said.

Meanwhile, NH NongHyup Financial Group is pursuing a total of 108 trillion won in productive and inclusive finance supply through 2030 under its "NH Mutual Growth Project." The five-year plan, running from 2026 to 2030, centers on supplying 93 trillion won in productive finance and 15 trillion won in inclusive finance. Through the initiative, the group aims to expand investment and corporate lending focused on advanced strategic industries, startup venture companies and region-specific industries, while supporting the growth of the real economy and regional industries through a national growth fund and the supply of risk capital.