Woori Bank is joining hands with the Korea Credit Guarantee Fund to supply large-scale funding to support small and medium-sized businesses.

Woori Bank said on April 29 it signed an agreement with the Korea Credit Guarantee Fund on April 28 on "inclusive financial support to respond to complex economic crises". The agreement is aimed at easing the financial burden on SMEs struggling due to a global economic slowdown and increased volatility in financial markets, and supporting a recovery in the real economy.

Woori Bank will contribute 6 billion won to the fund to provide a total of 240 billion won in financial support. Eligible firms include vulnerable sectors linked to oil and prices, small businesses, and supply-chain related companies such as those in materials, parts and equipment. The programme also covers companies hit by external variables such as the Middle East war, as well as import-export and overseas expansion firms.

For these companies, the guarantee ratio will be raised to 100 percent from 85 percent and guarantee fees will be supported by 0.7 percentage points, providing benefits that lower financing costs.

Jin-wan Jeong (정진완), CEO of Woori Bank, said the agreement would serve as an opportunity to improve financial access for SMEs facing difficulties in raising funds. He said the bank would strengthen cooperation with the Korea Credit Guarantee Fund to support management normalisation and growth of small and mid-sized companies.