6.2 trillion won in new loans, 9 trillion won in maturity extensions; up to 1 billion won per company, with preferential rates of up to 1.5 percentage points

KB Kookmin Bank headquarters [KB Kookmin Bank]
KB Kookmin Bank headquarters [KB Kookmin Bank]

KB Kookmin Bank will extend 15.2 trillion won ($11.1 billion) in financial support to small and medium-sized enterprises and small business owners facing increased funding needs ahead of the Chuseok holiday.

The bank announced Wednesday it will provide a total of 15.2 trillion won — comprising 6.2 trillion won in new loans and 9 trillion won in maturity extensions — to ease the holiday-season financial burden on small businesses.

Individual companies may borrow up to 1 billion won within the scope of their funding needs. For loans coming due, borrowers may extend maturities without repaying part of the principal, and the bank will also offer deferrals on installment payments.

Preferential interest rates of up to 1.5 percentage points will apply to new loans and maturity extensions, depending on each company's conditions. The measure is designed to ease the temporary cash-flow pressure that small and medium-sized enterprises and small business owners face around the holiday period, when demand for operating funds — including payments for raw materials, goods and employee salaries — spikes.

"We put together this support package to ease the financial difficulties of small and medium-sized enterprises and small business owners struggling with cash management during the Chuseok holiday, and to help stabilize their operations," a bank official said. "We will continue to closely monitor financing needs on the ground and provide the necessary support going forward."

Meanwhile, KB Kookmin Bank has also been expanding financial support for small and regional manufacturers. Last month, it signed an agreement with the Korea Credit Guarantee Fund to supply 175 billion won in guarantee-backed financing to companies in industrial complexes and regionally based industries.


rim@heraldcorp.com