On April 24, 2025, Woori Bank and the Korea Credit Guarantee Fund (KCGF) signed a significant business agreement aimed at providing financial support to small and medium-sized enterprises (SMEs) facing liquidity challenges due to rising global protectionism and fluctuating exchange rates. The agreement was formalized at Woori Bank's headquarters in Jung-gu, Seoul, and is set to enhance the financial landscape for innovative growth sectors.
The collaboration is designed to create a robust support system for SMEs, which are crucial to the South Korean economy but are currently struggling to secure necessary liquidity. Under the terms of the agreement, Woori Bank will make a special contribution of 100 billion won to the KCGF, which will leverage this funding to facilitate loans totaling approximately 2,100 billion won.
Specific provisions of the agreement include increasing the maximum guarantee rate to 95%, expanding the guarantee limit per company up to 500 billion won, and offering customized guarantees based on each company's growth roadmap. This tailored approach aims to meet the unique needs of businesses across various sectors, including semiconductors, secondary batteries, and future mobility.
Jeong Jin-wan, the CEO of Woori Bank, expressed optimism about the partnership, stating, "Through this agreement, we will actively engage in financial support to overcome mutual interest crises alongside the KCGF. We aim to provide timely liquidity to help innovative growth companies transition into global enterprises." His commitment underscores the bank's strategic focus on empowering SMEs, which are often seen as the backbone of the economy.
The KCGF, led by Chairman Choi Won-mok, also emphasized the importance of this collaboration. Choi remarked, "This agreement represents a crucial step in protecting export companies and supporting the growth of innovative enterprises. We will continue to work with relevant organizations to enhance financial support that boosts global competitiveness." His comments highlight the broader implications of this partnership, not just for individual businesses but for the national economy.
In addition to the financial provisions, Woori Bank has expanded its Biz Prime Center, a specialized channel dedicated to SMEs. The center has been newly established in Hwaseong and Pyeongtaek, bringing the total number of locations to 12 across the country. This expansion is part of Woori Bank's ongoing efforts to create a dedicated support network for SMEs, ensuring they have access to the resources they need to thrive.
Last year, Woori Bank successfully arranged 2,900 billion won in customized financial support agreements, which were quickly utilized, demonstrating the high demand for such tailored financial products among SMEs. The bank's proactive approach in establishing these support channels reflects its commitment to fostering a sustainable business environment for smaller enterprises.
The current economic climate, characterized by global uncertainties and trade tensions, has placed additional pressure on SMEs, making financial support initiatives like this one all the more critical. With the agreement now in place, both Woori Bank and the KCGF are poised to play pivotal roles in helping these businesses navigate challenges and seize opportunities for growth.
This partnership not only signifies a collaborative effort to bolster the SME sector but also represents a strategic response to the evolving economic landscape. As Woori Bank and the KCGF work together, they aim to create a resilient framework that supports innovation and sustainable growth within South Korea's economy.
In summary, the agreement between Woori Bank and the KCGF is a promising development for SMEs in South Korea, providing essential financial support and resources needed for their growth and stability. By addressing the liquidity challenges faced by these enterprises, the partnership aims to foster a more dynamic and competitive economic environment.
