Shinhan Bank said on Monday it signed an agreement on Feb. 24 with the Korea Trade Insurance Corp at Shinhan Bank's headquarters in Jung-gu, Seoul, to expand direct guarantee support tailored for exporting micro businesses.

The agreement aims to expand small-amount guarantee support for exporting micro businesses that face difficulties in obtaining financial support due to low credit ratings or limited export performance, and to promote entry into overseas markets.

Under the agreement, Shinhan Bank and the Korea Trade Insurance Corp will strengthen a financial support system for exporting micro businesses by expanding the lineup of non-face-to-face guaranteed loan products dedicated to low-credit exporters (Light guarantee), fully supporting guarantee fees for companies using Light guarantees, and raising guarantee limits for firms that repay direct guarantees, including Light guarantees, faithfully.

In particular, under the agreement, companies with a KoDATA credit rating of B-minus or higher can apply for export promotion funds backed by a Korea Trade Insurance Corp guarantee certificate, from a minimum of 10 million won to a maximum of 120 million won depending on their rating.

A Shinhan Bank official said the bank improved the product structure to support micro businesses that have export capabilities but faced restrictions in accessing financing due to credit ratings or performance requirements. The official said the bank would continue to expand substantive funding support for micro businesses in financial blind spots to practise inclusive finance.