Under the leadership of Jeon Hyun-hee, a member of the National Assembly from the Democratic Party, a financial support agreement for youth startups has been established between Hana Bank, the Credit Guarantee Fund, and the Technology Guarantee Fund. This initiative has resulted in the launch of financial products offering up to 300 million won with interest rates in the 3% range.
According to political sources, Hana Bank released a youth startup financial product linked with the Technology Guarantee Fund on August 24, and plans to launch a product in collaboration with the Credit Guarantee Fund on August 27. This will mark the full operation of a 'financial ladder for youth startups' with a total scale of 200 billion won.
According to Jeon’s office, the financial support products aim to alleviate the financial burden on young entrepreneurs who possess technology and business potential but face challenges in securing funding.
The Credit Guarantee Fund and the Technology Guarantee Fund will each provide guarantees of 100 billion won based on contributions from Hana Bank, planning to support working capital of up to 300 million won for qualifying businesses.
Notably, Hana Bank will fully cover the guarantee fee of 0.3 percentage points for three years, effectively exempting young businesses from this cost. The loan interest rates will be applied at levels between 3.6% and 3.9%, depending on individual conditions. Eligible recipients include businesses led by youth that meet the guarantee requirements of each institution and are within seven years of establishment.
Jeon stated, "One of the biggest barriers young entrepreneurs face is the difficulty in securing funding due to a lack of collateral and credit, despite having good technology and ideas." She emphasized the significance of establishing a financial ladder that young people can feel in their daily lives.
She added, "In the future, we will continue to work with the Lee government, financial authorities, and the financial sector to ensure that the potential of youth is not hindered by barriers of collateral and credit, and we will expand the 'financial ladder for youth startups' across the banking sector."
* This article has been translated by AI.
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