Hana Bank said on Tuesday it signed a business agreement on Monday with Gwangju, the Gwangju Chamber of Commerce and Industry, the Korea Credit Guarantee Fund and the Korea Technology Finance Corp to support the development of anchor companies in the Gwangju and Honam region.

The agreement was set up to build a sustainable growth base for small and medium-sized companies in the Gwangju and Honam region that operate in future strategic industries. It aims to promote balanced national growth centered on five poles and three special zones and to help revitalise the regional economy.

Under the deal, Hana Bank will contribute a total of 4 billion won, including 3 billion won to the Korea Credit Guarantee Fund and 1 billion won to the Korea Technology Finance Corp. The bank will supply liquidity worth 155.6 billion won to companies in six advanced strategic industries under ABCDEF (AI, BIO, Contents, Defense, Energy and Factory), exporters and companies expanding overseas, job-creating companies and firms in regional-based industries. It also decided to support 0.6 percent in guarantee fees for two years.

The Korea Credit Guarantee Fund and the Korea Technology Finance Corp will provide benefits including preferential guarantee coverage ratios (85 percent to 100 percent, for three years) and reduced guarantee fees (down 0.3 percentage point, for three years). Gwangju will provide an interest subsidy of 2.0 percent on working capital worth 30 billion won to reduce financing costs for local SMEs, and the Gwangju Chamber of Commerce and Industry plans to encourage participation among its members and regional companies.

Hana Bank CEO Lee Ho-seong (이호성) said the agreement would help improve access to finance for promising SMEs in the Gwangju and Honam region, support stable business operations and establish the bank as a reliable financial partner that brings vitality to the regional economy. He said the bank would further accelerate productive financial support for balanced national development and fostering future strategic industries.