Shinhan Bank said on Thursday it signed a business agreement with the Incheon Credit Guarantee Foundation to help ease financial burdens for small and medium-sized enterprises and small merchants in the Incheon area and to support the local economy.

Under the agreement, Shinhan Bank will make a 1.5 billion won special contribution to the Incheon Credit Guarantee Foundation. The foundation will use the funds to provide 22.5 billion won worth of guarantee support. The support targets SMEs and small merchants based in Incheon, with a guarantee limit of up to 200 million won per company.

The agreement was designed to improve financing conditions for local small merchants facing difficult business conditions due to an economic slowdown and rising costs. It aims to help them secure liquidity and support stable operation of local commercial districts, contributing to revitalising the local economy. Shinhan Bank plans to continue strengthening inclusive finance support that can be felt on the ground based on cooperation with guarantee institutions.

Shinhan Bank signed a first agreement with the Incheon Credit Guarantee Foundation on Jan. 21. It agreed to provide 45.0 billion won worth of guarantee support through a 3.0 billion won special contribution. The support targets small merchants based in Incheon, with a guarantee limit of up to 50 million won per company.

A Shinhan Bank official said the special contribution agreement was designed to provide practical help to small merchants in Incheon struggling to raise funds. The official said the bank would continue to pursue inclusive finance for SMEs and small merchants through cooperation with local credit guarantee foundations.