KakaoBank will supply about 17 billion won worth of loans to small merchants in 6 autonomous districts in Seoul, together with the Seoul Credit Guarantee Foundation. It plans to expand the beneficiaries to all 25 districts in Seoul.

KakaoBank said on Wednesday it would sign a business agreement for a special contribution to support local economies with the Seoul credit guarantee body and 6 districts, including Mapo-gu, Seocho-gu, Seongbuk-gu, Songpa-gu, Yangcheon-gu and Eunpyeong-gu.

The agreement is part of a financial support programme for small merchants in Seoul that KakaoBank announced in May when it made a 10 billion won special contribution to the Seoul credit guarantee body. KakaoBank decided to use 5 billion won of that contribution for a local economy support programme linked to Seoul's 25 districts.

KakaoBank will support about 17 billion won worth of loans for small merchants in the 6 districts by adding additional contributions from the districts to its own 5 billion won special contribution.

The special contribution guarantee product can be applied for at branches of the Seoul credit guarantee body and on its app. Small merchants with business sites in the relevant districts can borrow up to 100 million won.

KakaoBank plans to expand cooperation to all 25 districts in Seoul and discuss additional support measures, including the scale of support and local promotion.

A KakaoBank official said the bank signed the agreements with the districts to reduce the financial burden of small merchants in Seoul. The official said it would continue to expand financial support for individual business owners.