Hana Bank said on Sunday it signed a business agreement with the Seoul Credit Guarantee Foundation to practise inclusive finance and help revitalise Seoul’s economy. It said the two sides agreed to cooperate to improve the efficiency of policy support for small merchants and boost the local economy.

The agreement was prepared to supply liquidity in a timely manner to small merchants in Seoul struggling due to the economic slowdown and to support stable management.

Hana Bank will make a special contribution of 30 billion won in guarantee funds and push total financial support worth 375 billion won. It plans to respond quickly to economic fluctuations and funding demand and to directly identify and support small merchants through one-to-one partnerships between Hana Bank branches and the Seoul Credit Guarantee Foundation’s comprehensive support centres.

It will also jointly develop specialised guaranteed loan products so that small merchants using policy loans and high-interest loans can also receive benefits. It plans to ease burdens in terms of interest rates and limits.

Hana Bank will also build a digital finance environment by linking its mobile app with the Seoul Credit Guarantee Foundation’s mobile app so that everything from guarantee applications to loan execution can be handled in a one-stop process.

Ahead of the agreement, Hana Bank’s Gongdeok-dong branch and the Seoul Credit Guarantee Foundation’s Mapo comprehensive support centre signed the first one-to-one partnership. Hana Bank plans to expand such partnerships and build a close-support system across Seoul.

Hana Bank CEO Ho-sung Lee (이호성) said, "This agreement focuses on practical financial support that small merchants can feel on the ground." He added, "We will work so that mutual cooperation between the two organisations can become a model case for practising the social responsibility of finance."