Hana Bank pledges W5b to revitalize Seoul's alley commercial districts

Hana Bank said Tuesday it will make a special contribution of 5 billion won ($3.68 million) to the Seoul Credit Guarantee Foundation to help revitalize the city's alley commercial districts.

To that end, the bank signed an MOU with Naver Pay, Naver and the Seoul Credit Guarantee Foundation on Thursday on "special contributions for activating Seoul's nighttime economy and youth entrepreneurship."

The agreement was designed to improve financial access for small business owners and young entrepreneurs in nighttime commercial zones in connection with the Seoul Moonlight Night Market development project, and to build a local commercial district support framework involving both financial institutions and platform companies.

Under the agreement, Hana Bank will contribute 5 billion won and Naver and Naver Pay will contribute 500 million won, bringing the total special contribution to the Seoul Credit Guarantee Foundation to 5.5 billion won.

The foundation will use the funds to supply 68.75 billion won in credit guarantees, and Hana Bank will provide guaranteed loans based on the certificates issued by the foundation.

The program targets small business owners and small and medium-sized enterprises in Seoul. Businesses located in six nighttime market zones designated by the Seoul Metropolitan Government — including Sangbong Meokja Alley in Jungnang-gu — as well as youth-founded businesses with up to seven years of operating history and businesses that have installed Naver Pay Connect terminals will be eligible for a preferential credit limit of up to 130 percent of the standard guarantee ceiling.

Special guarantees will cover up to 100 million won per business for a period of up to five years. The program will also be linked to the Seoul Metropolitan Government's interest subsidy to reduce the financial burden on small business owners.

Hana Bank and Naver Pay also donated a combined 10 million won in development funds to the Sangbong Meokja Alley merchants' association.

"For the Seoul Moonlight Night Market project to translate into real sales growth for small business owners and the broader development of local commercial districts, it is crucial that the right financial support reaches the ground at the right time," Hana Bank President Lee Ho-seong said. "Hana Bank will continue to provide effective financial support through close cooperation with the Seoul Credit Guarantee Foundation and Naver Pay, so that young entrepreneurs and small business owners in alley commercial districts can run their businesses with stability."

Last month, Hana Financial Group signed an MOU with the Korea Federation of Small and Medium Business and the Korea Federation of SMEs to support price stabilization by supplying "good eggs" to neighborhood supermarkets.