Hana Bank launches $270 mil. package to support small businesses

Hana Bank headquarters in Seoul / Courtesy of Hana Bank

Hana Bank launched its financial support plan, totaling 355.7 billion won ($270 million), to support small business owners and the self-employed facing challenges due to the prolonged high interest rates, inflation and economic downturn after the COVID-19 pandemic, the bank announced Thursday.

According to the bank, the support plan targets around 300,000 customers of the bank who own small businesses or are self-employed. It consists of interest cashback — which is a support program jointly launched by the banking industry — as well as Hana’s own support programs for energy and telecommunication expenses and business consulting.

Hana Bank plans to provide a cashback of up to 3 million won to customers with business loans. This interest cashback program has expanded support in terms of both scale and scope compared to the support program for small business owners announced in November last year.

Additionally, the bank will provide around 30 billion won for energy expenses of the self-employed who are financially vulnerable, especially those facing the challenges of the winter season.

Details of other support measures that are of substantial help for business operations, such as telecommunication subsidies and business consulting, will be finalized during the first quarter.

“Through the support package, we will get rid of any blind spots in stable livelihoods of the customers, engaging ourselves in not only the joint project by the banking industry but also mutual growth programs launched on our own,” a Hana Bank spokesperson said.

Meanwhile, Hana Bank established an entity in charge of collaborative financial programs during its organizational restructuring. It aims to respond proactively to social demands for collaborative finance, bolstering support for the self-employed and small businesses as well as those who are financially vulnerable.