Kwangju Bank said on the 19th it will provide 1 trillion won ($720 million) in special financing to small and mid-sized companies and small business owners in its region ahead of the Chuseok holiday.
The bank said the program is designed to meet rising demand for funds around the holiday and to help steady local businesses amid continued economic uncertainty.
The financing consists of 500 billion won in new loans and 500 billion won in maturity extensions. Each company can receive up to 5 billion won.
New loans carry an interest rate cut of up to 0.6 percentage point off the calculated rate. The bank said this should ease companies' financing costs.
The program runs from the 20th through September 30 and is open to small and mid-sized companies and small business owners in the region. The funds can be used for production, payment settlements and raw material purchases, as well as for other operating expenses needed to keep businesses stable.
The bank said it will provide support after reviewing each company's financial situation and business conditions, aiming to deliver funds quickly so that money is available in time for the holiday.
"This is a period when demand for funds rises ahead of the Chuseok holiday," said Woo Sung-yi, head of Kwangju Bank's credit strategy department. "We hope this special financing offers real help to local small and mid-sized companies and small business owners in managing their funds steadily."
