On May 11, Hana Bank announced that it has signed a 'Financial Support Agreement for Business Succession and M&A for SMEs' with the Technology Guarantee Fund.
The agreement aims to assist SMEs facing challenges in business succession and to foster technology-driven companies.
As part of the agreement, Hana Bank will contribute a total of 2 billion won to the Technology Guarantee Fund. This fund will then provide a total of 65.7 billion won in guarantees. The guarantee includes 30 billion won through special contributions and 35.7 billion won through support for guarantee fees.
The support will target companies pursuing business succession or M&A, providing them with working capital and facility funds. Eligible companies can receive guarantees of up to 100% and benefit from a reduction in guarantee fees of up to 0.7 percentage points.
Recently, SMEs have faced ongoing difficulties in business succession due to the aging of founders and a lack of successors. Many companies, while possessing technological capabilities, struggle to secure funding during the succession process or find it challenging to pursue M&A for business expansion.
Through this agreement, Hana Bank plans to alleviate the financial burden on SMEs pursuing M&A and support their growth potential. Seo Yoo-seok, Deputy Head of Hana Bank's Corporate Group, stated, "We will continue to provide comprehensive support to ensure that SMEs can secure growth momentum through active M&A and facilitate smooth business succession and technological innovation."
* This article has been translated by AI.
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