Hana Bank will join hands with the Korea Credit Guarantee Fund to expand financing support for social economy firms such as social enterprises and cooperatives. It plans to supply 20 billion won in guarantees and subsidise part of the guarantee fee paid by companies for three years to cut financing costs.

Hana Bank said on Wednesday it signed a business agreement with the Korea Credit Guarantee Fund on financial support to revitalise social solidarity economy.

Eligible recipients under the agreement include social enterprises, cooperatives, village enterprises and self-reliance enterprises. Support will cover not only funds needed to run a business but also loans required to expand business facilities or invest in equipment.

To reduce the cost burden for companies using guarantees, Hana Bank will subsidise 0.5 percentage points of the annual guarantee fee rate for three years. The goal is to improve financial access for firms that face relatively weak funding conditions through the guarantee fee support.

Seo Yoo-seok (서유석), executive vice president and head of Hana Bank's corporate group, said the agreement strengthened the support system to help social economy firms raise funds. He said the bank will continue providing financial support so companies can operate their businesses stably and grow.