HUG, Busan Bank to Provide KRW 40 Billion in Low-Interest Financing to SMEs in Busan, Ulsan and South Gyeongsang Province
- Input
- 2026-09-30 15:12:34
- Updated
- 2026-09-30 15:12:34
HUG announced on the 30th that it had signed an agreement on the Regional Cooperation Win-Win Fund at Busan Bank's headquarters on the 29th. Under the agreement, HUG will deposit KRW 20 billion with Busan Bank, which plans to use the funds to arrange a total of KRW 40 billion and provide low-interest loans to regional SMEs.
Eligible recipients are SMEs in Busan, Ulsan and South Gyeongsang Province that have been operating for at least two years. Housing construction companies, technology-based startups, youth-led companies, artificial intelligence (AI)-related companies and marine and fisheries businesses are among those eligible for support. The loan limit is up to KRW 500 million per company. Housing construction companies, however, can receive up to KRW 700 million each. The measure is intended to ease the financial burden on the region's housing construction industry, which is facing difficulties due to construction costs and financing expenses.
The loan interest rate will be up to 1.7 percentage points lower than prevailing market rates. HUG expects the financial support to reduce financing costs for regional SMEs, promote stable business operations and help revitalize the regional economy.
Choi In-ho, president of HUG, said, "I hope this financial support will help ease the financial burden on SMEs in Busan, Ulsan and South Gyeongsang Province that are experiencing funding difficulties and serve as an opportunity to bring new vitality to the regional economy." He added, "As a public corporation representing Busan, HUG will continue to expand practical support through regional economic cooperation so that we can grow together and coexist with regional companies."
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