Saemaeul Geumgo will provide about 200 billion won in low-interest loans to ease financial burdens for small merchants and small firms.

Saemaeul Geumgo said on Aug. 18 it is promoting a 'local government cooperation financial support programme' in cooperation with local governments and local credit guarantee foundations.

Under the programme, Saemaeul Geumgo contributes funds to local credit guarantee foundations and provides low-interest loans to small merchants based on guarantees from the foundations. Local governments support the loan interest.

Saemaeul Geumgo contributed 6 billion won last year and supplied about 80 billion won in loans. This year it expanded its contribution to 16.5 billion won, and 526 Saemaeul Geumgo branches nationwide are participating to support about 200 billion won in low-interest loans.

Support by region will also continue. In Jeju, it signed an agreement with the Jeju provincial office and the Jeju Credit Guarantee Foundation to offer 10 billion won in low-interest refinancing loans to small merchants with mid to low credit. In September, it plans to additionally supply 15 billion won in special guarantee loans for small merchants.

An official at the Saemaeul Geumgo Federation said it was aimed at easing financial burdens for small merchants and small firms. The official said it would continue support tailored to local financing demand.