Shinhan Bank will supply agreement-backed guarantees worth a total of 500 billion won for small businesses and self-employed merchants in Busan, together with the Busan city government and the Busan Credit Guarantee Foundation. It will support up to 30 million won per company and, through interest subsidies, enable firms to use funds at an effective 1 percent-level rate.

Shinhan Bank signed a business agreement on Sept. 14 with the Busan city government and the Busan Credit Guarantee Foundation on “1 percent-level low-interest loans and high-interest loan refinancing for small merchants facing a management crisis”. It said on Monday it will jointly 추진 the “livelihood stability agreement-backed guarantee” programme.

The agreement-backed guarantees were 마련됐다 to support management stability for small businesses and self-employed merchants in Busan facing higher financial cost burdens. Five financial institutions, including Shinhan Bank, are taking part, and the total supply amount is 500 billion won.

Eligible borrowers are small businesses and self-employed merchants registered and operating in Busan.

Loans will receive interest subsidies of 4.0 percentage points for the first year and 2.0 percentage points thereafter. This is intended to help small merchants use funds at an effective 1 percent-level rate.

The support limit is up to 30 million won per company. Repayment can be chosen as equal instalments over 5 years or instalment repayment over 4 years after a 1-year grace period.

A Shinhan Bank official said: “We hope this will help lower the financial cost burden for small merchants in Busan and support them in continuing stable management.”