Hana Bank will provide financial support worth a total of 200 billion won for young entrepreneurs and youth-led companies in cooperation with the Korea Technology Finance Corporation and the Korea Credit Guarantee Fund.

Hana Bank said on Aug. 22 it signed a business agreement on Aug. 21 at its Euljiro headquarters in Jung-gu, Seoul, with the Korea Technology Finance Corporation and the Korea Credit Guarantee Fund for "Y-Bridge (BRIDGE) guaranteed financial support to help young companies leap forward".

Under the agreement, Hana Bank will supply guaranteed loans under the partnership worth a total of 200 billion won to young entrepreneurs and young companies.

The support targets eligible sole proprietors aged 39 or younger and companies led by a chief executive who is a young person aged 39 or younger. Up to 300 million won will be provided per company, and a 100 percent guarantee ratio will apply under the Korea Technology Finance Corporation and the Korea Credit Guarantee Fund.

To reduce financing costs for young entrepreneurs, Hana Bank will fully cover a fixed 0.3 percent guarantee fee paid to the guarantee funds. It also plans to operate an on-site support system to ensure smooth execution of the guaranteed loans under the agreement.

It will also provide asset-building support for young company heads, sole proprietors and young employees. For customers aged 39 or younger, it will offer 50,000 "Naemam Savings" preferential-rate coupons applying an interest rate of up to 6.5 percent per year. The subscription period is 12 months and the monthly deposit is capped at 200,000 won.

Ho-sung Lee (이호성), CEO of Hana Bank, said, "I hope young entrepreneurs with innovative technology and ideas can overcome early-stage funding difficulties through this guaranteed support under the agreement and make a bigger leap forward."