BNK Financial Group to offer W1.6tr in special Chuseok loans

BNK Financial Group announced Monday it will offer a total of 1.6 trillion won ($1.16 billion) in special Chuseok loans through Busan Bank and Kyongnam Bank to help small and medium-sized enterprises and small business owners in the region manage their finances ahead of the holiday.

The special loan program was designed to ease the financial burden on local small and medium-sized enterprises and small business owners struggling with sluggish economic conditions, liquidity shortages and declining sales, while injecting vitality into the regional economy.

The program runs from Monday through Oct. 26, roughly two months, with Busan Bank and Kyongnam Bank each providing 800 billion won for a combined total of 1.6 trillion won. Each bank's allocation is split between 400 billion won in new loans and 400 billion won in loan extensions.

The primary targets are companies in the marine and fisheries industries, local startups, technology-driven small and medium-sized enterprises, companies creating local jobs, small and medium-sized enterprises in industries designated as strategic by local governments, and long-standing business clients. Individual companies may receive up to 3 billion won, and the group plans to offer interest rate reductions of up to 1.0 percentage point to help lower financing costs for regional businesses.

"This special loan program is designed to ease the management burden on small and medium-sized enterprises and small business owners facing increased funding needs during Chuseok," a BNK Financial Group official said. "We will fulfill our role as the region's leading financial group to ensure that financing reaches those who need it at the right time."