Hana Bank allocates $75.6M in support of small businesses

Hana Bank will provide 100 billion won in financial support for small business owners struggling with high interest rates and an economic slowdown. Cashback on interest, subsidies on utility fees, and consulting services will be offered.

Hana Bank CEO Lee Seung-lyul, right, talks with a merchant at a traditional market in Seoul on Friday. [HANA BANK]

Hana Bank will provide 100 billion won ($75.6 million) in financial support for small business owners struggling with high interest rates and an economic slowdown, the bank said on Friday.

Hana said it will offer cashback on interest payments, subsidies on utility fees and consulting services to some 300,000 individual business owners. The program is intended to share growth with vulnerable social groups, it said.

More than 60 billion won will be allocated to cashback on interest payments, while 30 billion won will be spent on subsidizing energy bills and 2 billion won on telecommunications expenses. Some 1.5 billion won will be allocated to providing consulting services to small business owners.

The program will start from next month.

Executives of Hana’s financial companies, including Hana Bank CEO Lee Seung-lyul and Hana Securities CEO Kang Seong-muk on Friday paid a visit to a traditional market in central Seoul on Friday to meet some of the owners.

“Financial support that offers realistic help to the self-employed is needed amid the extended high interest rate and inflation,” said Lee during the visit.

Inflation grew 3.8 percent in October from a year earlier, compared to 3.7 percent in the previous month on year.

BY JIN MIN-JI [jin.minji@joongang.co.kr]