IBK Industrial Bank is set to launch a short-term liquidity support loan worth 500 billion won for small and medium enterprises (SMEs) facing temporary cash flow issues.
The bank announced on the 25th that it will introduce the 'Short-Term Liquidity Support Fund Loan' on the 26th.
KOFR is a benchmark interest rate calculated based on the overnight repurchase agreement rate, secured by government bonds and treasury bonds. This product marks the first instance in the banking sector where the KOFR is applied as a loan base rate, providing consumers with a variety of interest rate options.
The target recipients are SMEs experiencing temporary cash shortages due to delayed receivables, seasonal funding needs, or increases in payroll and rent. Additionally, SMEs located in regional areas will benefit from a maximum interest rate reduction of 0.3 percentage points, and the bank will waive all prepayment penalties to ease short-term repayment burdens.
An IBK official stated, "We hope this will assist SMEs struggling with temporary liquidity shortages."
* This article has been translated by AI.
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