Gwangju Bank said it will provide a total of 1 trillion won ($709 million) in special chuseok funds for small and medium-sized enterprises to ease the financial burden on local businesses and small business owners ahead of the holiday.
The special fund was designed to address the temporary surge in financing needs around the holiday period amid continued economic uncertainty, and to support the stable operations of local small and medium-sized enterprises and small business owners.
The program comprises 500 billion won in new loans and 500 billion won in loan extensions, with a maximum of 5 billion won available per company. New loans will carry an interest rate discount of up to 0.6 percentage points below the standard calculated rate, reducing borrowing costs for businesses.
The program runs from Thursday through Sept. 30 and is open to small and medium-sized enterprises and small business owners in the region. The funds may be used for product production and delivery payments, raw material purchases, and other operating expenses needed to stabilize business operations.
Gwangju Bank plans to move quickly to ensure financing reaches businesses when needed, carefully reviewing each company's financial situation and operating conditions ahead of the holiday.
"We hope this special fund will provide real help to local small and medium-sized enterprises and small business owners in managing their finances during a period of heightened demand ahead of the chuseok holiday," said Woo Seong-i, head of the bank's credit strategy division. "We will continue to respond actively to the financial needs of the local economy and serve as a reliable financial partner."
sij@heraldcorp.com
