Hana Bank to offer $104 mil. financing for SMEs in Jeolla region

Hana Bank said Tuesday it will provide 155.6 billion won ($104 million) in financing support for small and medium-sized enterprises (SMEs) in North and South Jeolla provinces in partnership with local authorities and state-backed guarantee agencies.

The bank signed a memorandum of understanding the previous day with the Gwangju Metropolitan Government, the Gwangju Chamber of Commerce and Industry, the Korea Credit Guarantee Fund (KODIT) and the Korea Technology Finance Corporation (KOTEC) to support financing for SMEs in the Jeolla region.

According to Hana officials, the initiative aims to help build sustainable growth momentum for businesses in the region while supporting the government's push for balanced national development and revitalizing the local economy.

The bank will contribute a total of 4 billion won to guarantee funds run by KODIT and KOTEC, enabling up to 155.6 billion won in financing for companies in six strategic industries; artificial intelligence, biotechnology, content, defense, energy and smart manufacturing.

The program will also provide a 0.6 percent guarantee fee for two years.

KODIT and KOTEC will offer preferential guarantee terms by raising the guarantee ratio to 100 percent from 85 percent for three years and cutting guarantee fees by 0.3 percentage point for the same period.

Hana Bank CEO Lee Ho-seoung said the agreement would help improve financing access for promising SMEs in the region.

"This partnership will expand financing access for promising SMEs in the Jeolla region, support their stable business operations and revitalize the local economy," Lee said.

The bank noted that it is also expanding similar programs nationwide, including financing initiatives for companies in the Busan and Gyeongsang regions, support for strategic industries in the Daejeon, Sejong and surrounding central region, as well as programs to support companies relocating to Jeju Island.