South Korean financial institutions are moving fast to protect small and medium-sized enterprises (SMEs) from the fallout of US President Donald Trump's newly announced tariffs.
With businesses on edge and market uncertainty growing, the country's financial giants are stepping in with urgent support.
Hana Financial Group has pledged a massive 6.3 trillion won ($4.38 billion) to help SMEs and small business owners stay afloat. Their goal? To provide a financial lifeline through easier access to loans, lower interest rates, and extended repayment periods all crucial for businesses facing an uncertain future.
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Hana Bank, the group's main lending arm, is dedicating 6 trillion won to ensure SMEs have the cash flow they need to survive.
On top of that, 24 billion won will go toward helping auto parts manufacturers, a sector hit especially hard by the tariffs, through a partnership with the Korea Credit Guarantee Fund.
For exporters worried about their credit ratings taking a hit, Hana Bank is holding off on downgrades and adjusting trade financing limits to keep them in business.
Small merchants are also getting a boost, with 300 billion won in new loans at special interest rates to ease financial pressure.
Hana Financial Group Chair Ham Young-joo assured business owners, saying, "We are committed to supporting SMEs and small merchants as they navigate the challenges brought by these tariffs."
Hana isn't the only financial giant rallying to the cause. Other major institutions are also mobilizing to cushion the impact:
Shinhan Financial Group has called an emergency meeting for Friday, where Chair Jin Ok-dong and top executives will discuss ways to stabilize the market.
KB Financial Group is convening a high-level strategy session with Chair Yang Jong-hee to explore financial solutions for affected businesses.
Woori Financial Group is closely watching currency fluctuations and market trends to prepare for any further economic shocks.
As South Korean businesses brace for the ripple effects of the tariffs, financial institutions are making it clear: they won't let SMEs fight this battle alone. With billions of won in relief efforts and major banks taking action, the hope is to prevent small businesses from collapsing under the pressure.
The coming weeks will be a crucial test of resilience—for the economy, for business owners, and for the financial sector working to keep them afloat.
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