Woori Bank said on Sunday it signed a business agreement with the Korea Technology Finance Corp to support small and medium-sized companies struggling due to global instability such as the Middle East war.

To join the government’s crisis response to the prolonged Middle East war, Woori Bank will make a special contribution of 4 billion won to KIBO and provide about 210 billion won in financial support. Eligible firms include direct exporters to the Middle East, companies hit by disruptions to supply chains for Middle East crude oil, firms with management difficulties and Middle East war-affected companies recommended by Woori Bank.

These companies can reduce their financial cost burden through a higher guarantee ratio of 85 percent to 100 percent or guarantee fee support of 0.5 percentage point. They will also receive benefits from KIBO including special treatment in calculating guarantee limits, eased screening and preferential guarantee limits.

Park Hwa-geun (박화근), head of corporate sales strategy at Woori Bank, said the agreement was designed to minimise management shocks to SMEs caused by the Middle East war. He said the bank will continue to cooperate with relevant institutions to respond to external risks and to continue shifting to productive finance and expanding inclusive finance.