Bank offers 2 billion won in low-interest loans to fire-hit merchants

Annual rate of 1.5%, up to 30 million won per business

Ulsan Mayor Kim Sang-uk (center), Kyongnam Bank CEO Kim Tae-han (third from left) and Kim Jong-seong (fifth from left), acting chairman of the Ulsan Credit Guarantee Foundation, attend the signing ceremony for the "Small Business Hope Bridge Shared Finance" MOU. [Provided by Ulsan city government]
Ulsan Mayor Kim Sang-uk (center), Kyongnam Bank CEO Kim Tae-han (third from left) and Kim Jong-seong (fifth from left), acting chairman of the Ulsan Credit Guarantee Foundation, attend the signing ceremony for the "Small Business Hope Bridge Shared Finance" MOU. [Provided by Ulsan city government]

Ulsan city and Kyongnam Bank have been stepping up shared-finance support for local small businesses struggling amid an economic slowdown and fire damage.

According to Ulsan city, Kyongnam Bank will extend 2 billion won ($1.45 million) in special low-interest loans to help the 57 shops at the Bangeojin Live Fish Center in Dong-gu resume normal operations after a fire broke out Aug. 22. Loans will be offered at an annual interest rate of 1.5%, with a maximum of 30 million won per shop.

Kyongnam Bank plans to raise the average interest rate on Ulsan city's treasury fixed deposits by 0.38 percentage points to 2.65%, channeling the projected 4 billion won in additional interest income toward easing the financial strain on local small businesses.

Earlier, on Thursday, the bank signed a "Small Business Hope Bridge Shared Finance" MOU with Ulsan city, committing 12.5 billion won in support for local small businesses. Under the agreement, small-business owners with annual income of 40 million won or less will be eligible for low-interest loans of up to 20 million won per business, with no collateral or guarantor required.

Ulsan city said it expects Kyongnam Bank's successive rounds of financial support to serve as a model of shared finance in which local government and regional financial institutions work together to help the local economy weather hardship.


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