KB Kookmin Bank is expanding the size of its interest rate preferential programme to support small and medium-sized companies and small merchants.

KB Kookmin Bank said on March 29 it operates an interest rate preferential programme with a total 규모 of 10 trillion won.

The "productive finance interest rate preferential programme" provides low-interest funds to industries that can raise value added in the national economy. From April, the bank will expand 지원 규모 to 6 trillion won from 3 trillion won.

Eligible borrowers are SMEs and individual business owners under productive finance, including companies related to national strategic industries, exporters, and growth companies in new technologies and promising fields.

The existing "branch-decision interest rate preferential programme" will also be maintained at 4 trillion won. Through this, the bank will help ease interest rate burdens for SMEs and small merchants, including productive finance companies.

KB Kookmin Bank has reorganised industry classification standards so financial support is centred on productive finance. To distinguish productive finance, it reorganised industry classification standards based on whether there is "a practical possibility of creating value added". It reflected this across its credit policies, including its key performance indicators (KPI), loan screening standards and interest rate decisions, to build a "productive finance growth and management system".

A KB Kookmin Bank official said, "We hope this financial support will be of practical help to SMEs and individual business owners," and added, "We will continue to expand financial support programmes to keep supporting corporate growth."