November 25, 2024

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The headquarters of KEB Hana Bank in Seoul (Yonhap)

Hana Bank announced Thursday that the company would provide 355.7 billion won ($270 million) in financial support for small business owners, who are struggling with high interest rates and the recent economic setback.

Hana Bank said its support program will offer cashback on interest payments, subsidies on utility fees and consulting services to some 300,000 small business owners and self-employed individuals.

Hana Bank has allocated 219.4 billion won for a cashback program on interest payments for small business owners. Those who are eligible for the scheme, led by the Korea Federation of Banks, will be able to receive up to 3 million won of cashback on interest payments to any local banks.

The company said it has decided to expand the program announced last year, in which the company allocated 66 billion won for cashback on interest payments.

Hana Bank will also run its own small businesses support scheme with a separate fund worth 136.3 billion won to provide additional support. The company will make plans in the first quarter and begin the support scheme during this year.

Of 136.3 billion won, some 30 billion won will be spent on subsidizing energy bills to help financially vulnerable businesses that Hana Bank has selected.

The company will also begin providing telecommunications expenses and consulting services to small business owners after finalizing related plans in the first quarter.

"Hana Bank will seek to recover the livelihoods of people through taking more active part in the Korea Federation of Banks' support scheme and operating its own financial support program," an official from Hana Bank said.

By Shim Woo-hyun (ws@heraldcorp.com)