IBK announced on Sept. 5 that it prepared a special support program for small business owners facing difficulties due to a delayed recovery in domestic demand and high inflation.
Totaling 7.5 trillion won, the program is named the IBK small business owners dream package.
This special support package has three categories. They are Business Foundation Support (2 trillion won), Growth Support (2.5 trillion won) and Business Difficulty Resolving Support (3 trillion won).
They are tailored assistance based on small business owners’ situations.
Business Foundation Support targets small business owners with business operations of seven or fewer years.
Comprehensive startup packages are being implemented for them since July.
The packages consists of 1.8 trillion won in facility funds for securing business sites, 0.2 trillion won in necessary working capital for raw materials, labor costs and more and customized consulting services.
For facility funding to secure business sites, interest rates are reduced by up to 1.5 percentage points on loans covering up to 90% of the initial purchase cost, enabling small business owners to operate stably without burdens for rents.
Additionally, through secondary guarantee agreements with local governments, interest rates can be further lowered by up to 2 percentage points, allowing access to ultra-low loans in the 1% range.
For small business owners needing working capital for raw material purchases and labor costs after equipment investment, IBK has signed a 200 billion won business agreement with Korea Credit Guarantee Fund and Korea Technology Finance Corporation.
This agreement reduces guarantee fees by 0.2 to 0.5 percentage points and loan interest rates by up to 1.3 percentage points, minimizing financial burdens for startup founders and small business owners.
Additionally, IBK will provide customized consulting services covering production, finance, and management to actively support newly established small business owners who have received facility investment in stabilizing their business operations.
Growth Support (2.5 trillion won) consists of 1.5 trillion won in Value Growth Loans for Small Business Owners (October) and the Small Business Scale-up Program which will spend 1.0 trillion won by end of September. Therefore, it will provide preferential funding and interest rates.
Value Growth Loans for Small Business Owners targets small business owners with their companies expected to show sustained growth through exports, technologies or digital transformation.
It provides working capital and facility funding of up to 3 billion won, with loan interest rates reduced by up to 1.3 percentage points.
The Small Business Scale-up Program provides working capital of up to 100 million won to small businesses expanding their operations through increased sales/employment or new exports, with loan interest rates reduced by up to 1.5 percentage points.
Business Difficulty Resolving Support (KRW 3.0 trillion) includes 1.0 trillion won for Small Business Crisis Overcoming Support Loans (at the end of September), one trillion won in Vitality Injecting Loans for Small Business Owners in Local Commercial Districts (October), one trillion won for the Special Interest Rate Relief Program (at the end of September).
This will provide emergency special funds to small business owners facing operational difficulties due to an economic recession in Korea.
Small Business Support Loans target small business owners facing operational difficulties such as reduced sales and rising costs.
IBK offers a maximum loan limit of 100 million won for working capital and 500 million won for facility funds, with interest rates cut by up to 1.8 percentage points.
U.S. Tariff Response Briefing
IBK announced that it successfully held the U.S. Tariff Response Briefing for small Korean exporters at the Small and Medium-Sized Enterprise (SME) Support Center in Hwaseong, Gyeonggi-do, on Sept. 9.
The U.S. Tariff Response Briefing was organized to support SMEs facing export-related difficulties due to U.S. tariff policies.
The briefing covered the latest trends in U.S. tariff policies, the impacts of tariff policies on Korea, current tariff status by major product categories and best practices in tariff response consulting.
Following the briefing, IBK provided participating companies with one-on-one customized consulting sessions led by experts including professional consultants and customs brokers, offering practical assistance with tariff-related challenges.
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