W1.8tr for small businesses under high-rate pressure

W2tr for regional SMEs — liquidity and restructuring support

National Growth Fund commits W1.35tr to advanced industries, infrastructure

Industrial Bank of Korea. [Industrial Bank of Korea]
Industrial Bank of Korea. [Industrial Bank of Korea]

Industrial Bank of Korea is broadening its productive-finance strategy beyond investment in future industries to include operational support for small business owners and regional small and medium-sized enterprises. The bank says it will focus on delivering tailored funding — from short-term liquidity and interest-rate relief to venture investment and industrial infrastructure — matched to each borrower's circumstances.

The bank launched the IBK Small Business Management Stabilization Loan on Thursday, making 1.8 trillion won ($1.34 billion) available to small business owners facing mounting financial pressure. The loan ceiling is 2 billion won per borrower, rising to 3 billion won for businesses based outside major cities, and borrowers can receive an interest-rate reduction of up to 1.5 percentage points.

The product also includes measures to ease early repayment burdens. The grace period on installment loans has been extended by up to one year beyond the existing standard, and early repayment penalties have been waived. The bank said the design reflects a deliberate effort not merely to inject new funds but to simultaneously reduce the interest and repayment load on borrowers.

For regional SMEs, the bank has unveiled a 2 trillion won Regional Balanced Growth SME Finance Package. The program combines 1 trillion won in liquidity support with a 1 trillion won financial-cost reduction program, and adds business restructuring assistance on top.

Companies operating in regional strategic industries or relocating outside major cities can receive loan-rate cuts of up to 1.3 percentage points through tie-ups with the Korea Credit Guarantee Fund and Korea Technology Finance Corporation. For regional firms using interest-subsidy loans from local governments and public institutions, the bank will layer on an additional rate reduction of up to 1.0 percentage point.

A view of Industrial Bank of Korea headquarters. [Industrial Bank of Korea]
A view of Industrial Bank of Korea headquarters. [Industrial Bank of Korea]

The bank also plans to channel 1.35 trillion won this year into advanced strategic industries and their ecosystems through the National Growth Fund. Of that total, 850 billion won will go toward direct investment in innovative small and medium-sized enterprises and venture companies, while the remaining 500 billion won will be directed at industrial infrastructure.

The corporate investment tranche will be deployed as venture capital calibrated to each company's stage of development — covering technology development, commercialization and scale-up. Infrastructure funds will flow into facilities essential to advanced strategic industries, including power, water supply and AI data centers. The infrastructure portion will be managed by IBK Asset Management and funded entirely with IBK Financial Group capital.

Taken together, the bank's financing initiatives this year reflect a segmented approach to capital deployment. Small business owners facing immediate cost pressures receive loans bundled with rate reductions and repayment deferrals; regional SMEs get a combination of liquidity and business-restructuring funds; and innovative SMEs and venture companies are connected not only to loan financing but also to investment capital and infrastructure funding.

"We are continuously expanding financial support tailored to on-the-ground funding needs in order to underpin the operational stability and growth of small and medium-sized enterprises and small business owners," a bank official said. "Going forward, we will supply the right capital at the right time for each stage of growth and strengthen investment support to sustain the long-term development of SMEs."


rim@heraldcorp.com