IBK Industrial Bank of Korea has 마련했다 a total of 1.5 trillion won in loan support programs for small merchants and small and medium-sized enterprises. It will allow companies worried about heavier interest burdens after government and local government policy funding periods end to refinance existing loans. It will also provide funds needed for business operations and facility investment to companies guaranteed by credit guarantee foundations.

The bank said on Wednesday it will implement a financial support program for small merchants and SMEs centered on refinancing loans and new funding support.

Of the total support, 1 trillion won was allocated to the "Small Merchant Policy Funding Soft Landing Support Loan" launched on Oct. 20. It targets companies at risk of higher loan interest rates as government or local government policy funding periods end.

The product is a dedicated loan for refinancing policy funding loans currently used at the bank. It cuts rates by up to 1.5 percentage points.

From Oct. 23, it will also launch the "Small Merchant Competitiveness Enhancement Program" with a 500 billion won limit. Companies that receive a guarantee certificate from a credit guarantee foundation can get rate cuts of up to 1.5 percentage points when borrowing new working capital or facility funds.

Jang Min-young (장민영), head of the bank, said, "We will continue to expand IBK-style inclusive finance policies to lower funding barriers for the financially underserved."