KakaoBank and Busan Bank signed a business agreement to pursue a joint loan project to expand financial support for small and medium-sized enterprises and vitalise the regional economy, they said on April 14.

The two lenders held a signing ceremony on April 13 at Busan Bank’s headquarters and agreed to pursue cooperation projects including the launch of joint loan products for SMEs and sole proprietors, expanded financial support and the development of new financial services.

They plan to raise funding access for regional companies and strengthen productive finance through the cooperation.

KakaoBank plans to combine its platform and digital technology based on a customer base of about 27 million with Busan Bank’s regional corporate finance infrastructure to build a cooperation model between an internet-only bank and a regional bank.

KakaoBank CEO Yun Ho-young (윤호영) said the agreement would serve as an opportunity to expand the inclusiveness of regional finance. He said the company would create a financial model that grows together with the regional economy based on technology and data.

Busan Bank CEO Kim Sung-ju (김성주) said the agreement would be a starting point for building a new financial model combining corporate finance and a digital platform. He said the bank would continue to expand digital financial services for SMEs and sole proprietors.