Hana Bank to provide W200b in financing for young entrepreneurs

Hana Bank announced Sunday that it has signed a guarantee financing MOU with the Korea Technology Finance Corporation and the Korea Credit Guarantee Fund to support the growth of youth-led businesses.

The agreement, titled "Y-BRIDGE Guarantee Financing Support for Youth Business Growth," was signed Friday at the bank's headquarters in Jung-gu, Seoul. Hana Bank President Lee Ho-sung, Korea Technology Finance Corporation Chairman Kwon Hyeong-taek and Korea Credit Guarantee Fund Chairman Kang Seung-jun attended, along with other senior officials from each organization.

The MOU aims to ease the financial liquidity constraints that young entrepreneurs with innovative ideas often face during the commercialization process, giving them the means to take bold risks and launch businesses, and providing a springboard for youth enterprises to grow into next-generation global companies.

Under the agreement, Hana Bank will extend 200 billion won ($144 million) in guaranteed loans and other financial support for young entrepreneurs. Eligible recipients include individual business owners aged 39 or under and youth-led companies whose CEO is under 40, with financing of up to 300 million won available per applicant. A 100 percent guarantee ratio will apply under the agreements with the two guarantee funds.

To minimize the actual financial burden on young business owners, the bank will cover the full fixed guarantee fee of 0.3 percent that borrowers would otherwise pay to the guarantee funds. The bank also plans to operate an on-site support system to ensure the guaranteed loans are disbursed smoothly and quickly.

As part of its broader push to expand inclusive finance for young people, the bank will also offer tailored financial benefits to help them build assets. A savings product offering a preferential interest rate of up to 6.5 percent per year — with a 12-month term and monthly deposits capped at 200,000 won — will be made available to up to 50,000 accounts for business owners, individual entrepreneurs and employees aged 39 or under.

Hana Bank also signed a separate financial support MOU with the Incheon Metropolitan Government on Aug. 14, covering livelihood stabilization for ordinary citizens, youth and small-business owners, as well as support for future strategic industries and innovative companies to promote regional growth.

"I hope young entrepreneurs with innovative technologies and ideas will use this guarantee support to overcome early-stage funding difficulties and take their businesses to the next level," Lee said. "Hana Bank will provide diverse and wholehearted support so that the challenges and growth of the younger generation, who will lead the future, can be nurtured into globally competitive youth enterprises."