Hana Bank will join hands with Naver Pay (Npay), Naver and the Seoul Credit Guarantee Foundation to supply a total of 68.75 billion won in guaranteed loans to small merchants and small and medium-sized companies in Seoul.

Hana Bank said on Monday it signed a business agreement with Naver Pay, Naver and the Seoul Credit Guarantee Foundation on a special contribution to revitalise Seoul's night-time economy and youth start-ups.

Under the agreement, Hana Bank will make a special contribution of 5.0 billion won to the Seoul Credit Guarantee Foundation, while Naver and Npay will contribute 500 million won, for a total of 5.5 billion won. The foundation will use the funds to provide 68.75 billion won in credit guarantees. Hana Bank will provide loans based on guarantee certificates issued by the foundation.

The programme targets small merchants and small and medium-sized companies based in Seoul. Preferential limits of up to 130 percent of existing guarantee limits will apply to businesses in 6 "Seoul Moonlight Night Market" commercial districts, including Sangbong Alley Food Street in Jungnang-gu selected by Seoul, youth start-ups in business for 7 years or less, and businesses that install "Npay Connect" terminals.

The special guarantees are capped at 100 million won per business, with a guarantee period of up to 5 years. The plan will also link to Seoul's interest subsidy programme to reduce the burden of financing costs, and eligibility and limits will be determined following reviews by the Seoul Credit Guarantee Foundation and Hana Bank.

Hana Bank and Npay also delivered a total of 10 million won in development funds to the Sangbong Alley Food Street Merchants Association, where the signing ceremony was held. The funds will be used to improve the commercial district's environment and for joint marketing.

Hana Bank Chief Executive Lee Ho-seong (이호성) said, "We will continue financial support so that youth business owners and small merchants in alley commercial districts can maintain their businesses in a stable manner."