Shinhan Bank said on Feb. 26 it signed a business agreement with the Jeonbuk Credit Guarantee Foundation on Feb. 25.

The agreement was designed to improve financing conditions for small businesses based in North Jeolla Province whose operating environment has worsened due to an economic slowdown and rising cost burdens, and to support stable operations in local commercial districts.

Under the agreement, Shinhan Bank will make a 400 million won special contribution to the Jeonbuk Credit Guarantee Foundation, and the foundation will use it to supply 5 billion won worth of guarantee support.

The support will be available to small businesses in North Jeolla Province that meet the Jeonbuk Credit Guarantee Foundation's standards, including firms facing management difficulties, first-meeting firms and growth and development firms. The maximum guarantee limit per company is 200 million won.

A Shinhan Bank official said, "We hope this special contribution agreement will provide practical help in stabilising management and laying the foundation for growth for small businesses in the Jeonbuk region." The official added, "We will continue to pursue inclusive finance for small businesses and small merchants through cooperation with regional credit guarantee foundations."