Daegu Metropolitan City, iM Bank and KODIT to Provide KRW 100 Billion in Financial Support for Economically Vulnerable Industries

【Financial News Daegu = Kim Jang-wook】Daegu Metropolitan City, iM Bank and the Korea Credit Guarantee Fund (KODIT) are joining forces to provide KRW 100 billion in financial support for economically vulnerable industries.
Daegu Metropolitan City said on the 8th that it had signed a mutual cooperation agreement with KODIT and iM Bank to support the growth and recovery of small and medium-sized enterprises in economically vulnerable industries in Daegu. The agreement will provide KRW 100 billion in guarantees to local companies, including those in the construction industry, which have been struggling amid the recent downturn.
The agreement is a follow-up measure to the construction industry financial support plan announced at the third Emergency Economic Measures Meeting. It aims to ease the financial burden on small and medium-sized enterprises in economically vulnerable industries, including construction, wholesale and retail, and information and communications, by providing stable, low-interest loans to businesses hit by high interest rates and the economic slowdown.
Mayor Choo Kyung-ho said, "This agreement is the result of turning the financial support measures discussed at the third Emergency Economic Measures Meeting into a concrete policy through the active cooperation of the two institutions. I once again express my gratitude to KODIT and iM Bank, and I will actively pursue effective policies that companies can genuinely feel by continuing to work with relevant institutions."
Under the agreement, iM Bank will pay KRW 2 billion in special contributions and guarantee-fee support funds to KODIT. Based on this funding, KODIT will provide a total of KRW 100 billion in guarantee-backed loans. Daegu Metropolitan City will provide an interest subsidy of 1.5 percentage points per year for one year on these loans, reducing companies’ actual interest burden.
Eligible recipients are small and medium-sized enterprises in economically vulnerable industries in the region, including construction, where business conditions have deteriorated amid a slowdown in the housing market caused by a recent increase in unsold homes. Each company can receive working capital of up to KRW 1 billion.
In addition to the 1.5-percentage-point interest subsidy, companies can receive benefits equivalent to up to 2 percentage points annually through either KODIT’s guarantee-fee reduction of 0.2 percentage points per year for three years or iM Bank’s guarantee-fee support of 0.5 percentage points per year for two years.
Loans linked to the guarantee program will begin accepting inquiries and applications on the 9th. Applicants can contact any iM Bank branch or one of KODIT’s six branches in Daegu Metropolitan City.
iM Bank President Kang Jeong-hoon said, "I hope this agreement will help ease the financial burden on local small and medium-sized enterprises and serve as an opportunity for them to grow again. iM Bank will provide local companies with the funds they need in a timely manner and work with Daegu Metropolitan City and KODIT to support the recovery of the local economy and the sustained growth of businesses."

[email protected] Kim Jang-wook Reporter