KakaoBank said on Monday it won a commendation from the Seoul city government in recognition of its contribution to improving financial access for small businesses in Seoul.

The award follows KakaoBank's active participation in Seoul's small business support programmes, including the 'Reassurance Account', contributing to regional economic development through financial support.

The 'Reassurance Account' is a non-face-to-face guaranteed loan in the form of an overdraft facility. KakaoBank and the Seoul city government introduced it in March last year through the 'Reassurance Account No. 1' programme, the first of its kind in the financial industry. KakaoBank also joined the 'Reassurance Account No. 2' programme in August last year, becoming the only financial company to launch the product twice in a row.

Although other financial companies also took part in the 'Reassurance Account No. 2' programme, more than 30 percent of all customers used KakaoBank. Of the 400 billion won in loans under 'Reassurance Account No. 1 and No. 2', 65 percent, or 260 billion won, was executed through KakaoBank.

The 'Reassurance Account' gained popularity on the back of non-face-to-face convenience and cost-saving benefits. Both versions were used up quickly in about 30 business days after launch.

KakaoBank and the Seoul city government have continued their cooperation by providing a range of tailored funding options beyond the Reassurance Account, including support for start-ups, jobs and growth, depending on customer circumstances. They plan to continue expanding financial support measures for small businesses in Seoul.

KakaoBank said, "We are pleased to have our efforts to help ease small businesses' funding difficulties recognised." It added, "Building on this award, we will take the lead in inclusive finance so that more small businesses can enjoy practical benefits."