Shinhan Bank is partnering with the Technology Guarantee Fund to provide financial support for small and medium enterprises (SMEs) pursuing business succession and mergers and acquisitions (M&A).
On August 31, Shinhan Bank announced that it has signed a memorandum of understanding for M&A financial support aimed at promoting business succession and technological innovation with the Technology Guarantee Fund.
Under the agreement, Shinhan Bank will contribute a special fund of 1 billion won and a guarantee fee support of 300 million won, totaling 1.3 billion won. Based on this, Shinhan Bank and the Technology Guarantee Fund will supply guaranteed loans amounting to 43.8 billion won.
Eligible companies will benefit from increased guarantee ratios (from 85% to 100%) and a 0.3 percentage point reduction in guarantee fees for three years, or a 0.7 percentage point support in guarantee fees for two years. This initiative aims to alleviate the financial burden associated with business succession and M&A processes.
Additionally, Shinhan Bank plans to support asset management and reinvestment following business sales and restructuring through its Shinhan Premier service. It will also collaborate with Shinhan Investment Corp. to provide comprehensive financial and advisory services necessary throughout the entire process of business succession and M&A.
A Shinhan Bank official stated, "The purpose of this agreement is to provide practical financial support so that SMEs with technological capabilities and growth potential can seize new growth opportunities. We will support the smooth business succession and technological innovation of SMEs."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.