IBK Opens 1.8 Trillion Won Loan Program for Small Businesses

Industrial Bank of Korea (024110.KS) launched a 1.8 trillion won ($1.3 billion) loan program on the 1st for small business owners struggling with high interest rates and inflation.

Self-employed business owners whose operating costs have risen recently are eligible. Specifically, the program targets businesses whose interest coverage ratio fell from the previous quarter, whose interest expenses increased, or whose costs for labor and raw materials rose.

Each business can borrow up to 2 billion won for working capital or facility investment (up to 3 billion won for businesses outside the Seoul area), with interest rate reductions of as much as 1.5 percentage points. The bank will also extend grace periods on installment loans by up to one year beyond current terms and waive early repayment fees. Small businesses based outside the Seoul metropolitan area can borrow up to 3 billion won, higher than the general 2 billion won ceiling.

"We will do our best to help small business owners overcome this crisis and get back on their feet," an IBK official said.