Interest Rates Lowered by Up to 1% for Related Companies
Shinhan Bank has announced a reduction in interest rates for loans amounting to 7 trillion won to innovative companies. This move is expected to save the companies over 52 billion won in interest expenses.
On December 3, Shinhan Bank unveiled its “Productive Finance Growth Support Package,” which includes reducing interest rates for new loans (6 trillion won) to companies involved in ultra-innovative and national core industries, as well as giving interest refunds and principal reductions for existing high-interest loans (979.9 billion won) to small and medium manufacturing enterprises, including individual business owners. Companies benefiting from this package are expected to save about 52 billion won in interest costs.
The support for ultra-innovative and national core industries is designed to lower interest rates by up to 1% for one year for companies meeting credit rating requirements and applying for new loans ranging from 100 million to 30 billion won. The aim is to strengthen industry competitiveness by providing investment funding to companies deemed to have technological strength and growth potential.
For small and medium manufacturing firms, the key measure is to refund the excess interest above 7% when renewing existing loans, automatically returning up to 3% of the interest paid beyond this rate. Eligibility requires maintaining a certain level of creditworthiness and not having overdue payments in the past six months. However, certain sectors, like real estate leasing and supply, are excluded.
A representative from Shinhan Bank stated, “This decision is aimed at enhancing the competitiveness of national core industries through ‘productive finance’ and alleviating the burden on small businesses struggling with high interest rates. We will continue to create a financial environment that allows ultra-innovative companies to grow stably.”