Hana Bank is joining hands with Lotte Engineering & Construction and the Korea Credit Guarantee Fund to provide up to 120 billion won in financial support to construction partner companies facing difficulties in raising funds. The aim is to ease management burdens for partner companies by providing liquidity and reducing financing costs, and to expand productive finance.

Hana Bank said on June 19 it signed a business agreement on June 18 at its headquarters in Euljiro, Seoul, with Lotte Engineering & Construction and the Korea Credit Guarantee Fund to provide financial support for Lotte Engineering & Construction partner companies to promote mutual growth and shared development.

Hana Bank and Lotte Engineering & Construction will create a total of 8 billion won in special contributions, up to 6 billion won and 2 billion won, respectively. The Korea Credit Guarantee Fund plans to use the funds to provide up to 120 billion won in agreement-based guarantees.

The two companies will first contribute a total of 2 billion won, including 1.5 billion won from Hana Bank and 500 million won from Lotte Engineering & Construction, and plan to expand the contribution amount in stages depending on fund usage.

The support targets about 2,000 domestic partner companies recommended by Lotte Engineering & Construction. Applicants can receive up to 3 billion won in working-capital loans after screening.

Supported companies will be offered preferential benefits, including a 100 percent guarantee coverage ratio, a 0.3 percentage point cut in guarantee fees and interest-rate reductions.

Hana Bank also plans to improve financial convenience for Lotte Engineering & Construction employees and partner companies.

Hana Bank CEO Ho-seong Lee (이호성) said, "We will actively support small and medium-sized companies that need funding so they can receive liquidity in a timely manner and also obtain tangible financial benefits." He added, "We will actively participate in mutual growth and shared development with small and medium-sized partner companies and build a sustainable financial cooperation system."