Hana Bank said on Tuesday it signed a business agreement with Busan Metropolitan City, the Busan Chamber of Commerce and Industry, Kibo Technology Fund and Korea Credit Guarantee Fund to support the development of anchor firms in the Busan and Yeongnam region.

The signing ceremony was attended by Park Hyung-joon (박형준), mayor of Busan Metropolitan City, Yang Jae-saeng (양재생), chairman of the Busan Chamber of Commerce and Industry, Lee Ho-sung (이호성), chief executive officer of Hana Bank, Lee Sang-chang (이상창), a standing director at Kibo Technology Fund, and Chae Byeong-ho (채병호), a standing director at Korea Credit Guarantee Fund, among other officials.

The agreement was designed to achieve a major shift to balanced growth centred on five hubs and three special zones, and to strengthen productive finance support by fostering specialised industries in the Busan and Yeongnam region. Under the plan, Hana Bank will provide financial support to help small and medium-sized companies based in the Busan and Yeongnam area secure liquidity for businesses in new growth engine industries and future strategic industries.

Hana Bank will contribute a total of 15.2 billion won, including 5.2 billion won to Kibo Technology Fund and 10.0 billion won to Korea Credit Guarantee Fund, to supply liquidity worth 505.6 billion won. It will support a guarantee fee of 0.6 percent for 2 years on 265.6 billion won of that amount. The support targets small and medium-sized companies in the Busan and Yeongnam region that have technological capabilities and operate in new growth engine industries and future strategic industries, while Kibo Technology Fund and Korea Credit Guarantee Fund will provide preferential guarantee ratios and reduced guarantee fees.

Busan Metropolitan City will also provide interest subsidies of 2.0 percent on 150.0 billion won in working capital loans to reduce financing costs for small and medium-sized companies based in Busan. The Busan Chamber of Commerce and Industry plans to encourage participation by its members and local companies.

Lee said balanced regional development is a key pillar for securing new future growth engines for the country. He said Hana Bank will spare no financial support in fostering technologically capable anchor firms in the Busan and Yeongnam region and in building growth engines by region.