Woori Bank, Kibo to Provide About $150 Million in Support for SMEs Hit by Mideast War Risks

Woori Bank will work with the Korea Technology Finance Corp., known as Kibo, to support small and medium-sized companies affected by global instability, including the war in the Middle East.

The bank said Sunday it signed a business agreement with Kibo on an “inclusive financial support” program to help SMEs overcome the crisis.

Woori plans to make a special contribution of 4 billion won to Kibo and provide about 210 billion won in financial support. Eligible firms include direct exporters to the Middle East, companies hurt by disruptions in Middle East crude oil supply chains, businesses facing management difficulties, and companies affected by the Middle East war that are recommended by Woori Bank.

Participating firms will be offered benefits including a higher guarantee coverage ratio to 100% from 85%, support for guarantee fees of 0.5 percentage points, special treatment in calculating guarantee limits, eased screening, and preferential guarantee limits.

“This agreement was prepared to minimize the management shock to SMEs caused by the Middle East war,” said Park Hwa-geun, a deputy general manager in Woori Bank’s corporate sales strategy division. “We will continue to cooperate with related institutions to respond to external risks, while faithfully carrying out our push to shift toward productive finance and expand inclusive finance.”