iM Bank will provide about 100 billion won in financial support for local small and medium-sized enterprises operating in economically vulnerable sectors such as construction, together with Daegu Metropolitan City and the Korea Credit Guarantee Fund.

iM Bank said on Sept. 9 it signed a business agreement on Sept. 8 at Daegu City Hall with Daegu Metropolitan City and the Korea Credit Guarantee Fund to support financial assistance for the growth and recovery of SMEs operating in economically vulnerable sectors in Daegu.

The agreement is designed to provide liquidity to SMEs in sectors such as construction that have faced a prolonged slump and to support the recovery of local industry.

Under the agreement, iM Bank plans to contribute a total of 2 billion won to the Korea Credit Guarantee Fund, including 1.2 billion won as a special contribution and 800 million won to support guarantee fees, and supply about 100 billion won in loans.

The support will target SMEs based in Daegu operating in economically vulnerable sectors such as construction, wholesale and retail, and information and communications.

The Korea Credit Guarantee Fund will raise the guarantee coverage ratio for eligible firms under the special contribution agreement guarantee to up to 100 percent for three years and cut guarantee fees by 0.2 percentage point.

For firms using the guarantee fee support agreement guarantee, iM Bank will support guarantee fees by 0.5 percentage point for two years. Daegu City plans to provide those firms with a preferential interest rate benefit of 1.5 percentage points for one year to ease their financial cost burden.

Kang Jung-hoon (강정훈), CEO of iM Bank, said it will work with Daegu City and the Korea Credit Guarantee Fund to supply necessary funds to local companies in a timely manner.