Woori Bank said on Jan. 29 it signed a business agreement with the North Gyeongsang Credit Guarantee Foundation and made a special contribution of 1 billion won to ease funding shortages for small businesses and micro merchants in North Gyeongsang Province.

Under the agreement, the foundation will use the 1 billion won contributed by Woori Bank to implement special agreement guarantees worth a total of 15 billion won.

Support targets are small businesses and micro merchants operating in North Gyeongsang Province. Each firm can receive up to 100 million won in working capital support, which is expected to help local small merchants secure liquidity.

The support was 마련됐다 to substantially ease the financial cost burden for local small merchants facing management difficulties due to high interest rates and an economic slowdown.

If the issuance of guarantee certificates expands based on the contribution, loan supply linked to low-interest local government policy funds will become smoother. It is expected to strengthen the local virtuous cycle of funds and help stabilise small merchants’ business operations.

Jeon Myeong-gon (전명곤), deputy head of Woori Bank’s SOHO Business Division, said the Future Shared Growth Project aims to expand the role of finance toward the recovery of the real economy and regional shared growth. He said the bank will continue to expand agreements with regional credit guarantee foundations to practice productive finance as a reliable partner for small merchants.