Ulsan city, Kyongnam Bank and Ulsan Credit Guarantee Foundation

sign 'shared-growth finance' MOU on Thursday

Ulsan city, Kyongnam Bank and the Ulsan Credit Guarantee Foundation are joining forces to provide 50 billion won ($36.1 million) to help local small businesses struggling with financial difficulties. Pictured is a ceremony held July 13 in which Kyongnam Bank donated 60 million won in energy vouchers for vulnerable households.
Ulsan city, Kyongnam Bank and the Ulsan Credit Guarantee Foundation are joining forces to provide 50 billion won ($36.1 million) to help local small businesses struggling with financial difficulties. Pictured is a ceremony held July 13 in which Kyongnam Bank donated 60 million won in energy vouchers for vulnerable households.

Ulsan city, Kyongnam Bank and the Ulsan Credit Guarantee Foundation signed a shared-growth finance MOU and held a special contribution handover ceremony Thursday, committing 50 billion won ($36.1 million) to support local small businesses facing cash-flow difficulties. Ulsan Mayor Kim Sang-uk, Kyongnam Bank President Kim Tae-han and Ulsan Credit Guarantee Foundation Acting Chairman Kim Jong-seong attended the signing.

Under the agreement, Kyongnam Bank will provide 12.5 billion won in special low-interest loans to small businesses experiencing temporary financial hardship.

Eligible borrowers are small-business owners with annual income of 40 million won or less, and each business may borrow up to 20 million won without collateral or a guarantor. Loans are repayable in installments within five years. Business owners currently in arrears or with impaired credit are excluded. Those wishing to apply may visit any Kyongnam Bank branch in the Ulsan area for consultation and to submit an application.

Kyongnam Bank will also donate 2.5 billion won to Ulsan city as a special contribution to fund credit guarantees for local small businesses. The Ulsan Credit Guarantee Foundation will use that contribution as a base to extend 37.5 billion won in guarantee support — 15 times the contributed amount. Combined with Kyongnam Bank's 12.5 billion won in direct loans, the total financial support package reaches 50 billion won.

Ulsan city and Kyongnam Bank have run a special financing program for local small businesses since 2019.

"I am grateful that a locally rooted financial institution has stepped up so actively to support our small businesses," Mayor Kim said. "I hope this agreement gives struggling business owners a chance to get back on their feet."


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