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[BUSINESS] · South Korea · 5 sources

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South Korean banks launch KOFR-based loans to support SMEs

KOFR Bank of Korea SME loans benchmark interest rates financial reform

Industrial Bank of Korea (KDB) and IBK Industrial Bank of Korea are launching new loan products based on the Korea Overnight Financing Repo Rate (KOFR) on October 26. These products aim to support small and medium-sized enterprises (SMEs) facing temporary liquidity shortages.

KDB will provide 500 billion won in loans, offering preferential interest rates of up to 0.65 percentage points for SMEs and an additional 0.05 percentage points for companies located in or relocated to regional areas. IBK will also launch a 500 billion won liquidity support loan, offering up to a 0.3 percentage point rate reduction for regional SMEs and waiving early repayment fees.

The Bank of Korea is accelerating the transition to KOFR to enhance financial market transparency. As part of this reform, the central bank has raised its target for KOFR-based interest rate swap transactions to 25% for the upcoming year, with a long-term goal of exceeding 70% by June 2030. Additionally, new loans based on the KORIBOR rate are expected to be phased out starting in April next year.

Entities

Bank of Korea · IBK Industrial Bank of Korea · KOFR · Korea Development Bank · South Korea

Claims

What the coverage asserts, and how many sources carry each claim.

  • [○ 1 SOURCE] KDB offers up to 0.65 percentage point preferential rates for SMEs and 0.05 percentage points for regional companies. socialvalue.kr
  • [○ 1 SOURCE] The Bank of Korea raised the KOFR-based interest rate swap transaction target to 25% for the second year. www.newstomato.com
  • [○ 1 SOURCE] The Bank of Korea plans to hold overseas investor relations (IR) in London and Hong Kong in November. www.newstomato.com
  • [○ 1 SOURCE] IBK provides up to 0.3 percentage point rate reductions for regional SMEs and waives early repayment fees. thesegye.com
  • [○ 1 SOURCE] New KORIBOR-based loans will be fundamentally discontinued starting in April next year. www.newstomato.com
  • [○ 1 SOURCE] KDB is launching a 500 billion won loan product based on KOFR on October 26. socialvalue.kr
  • [○ 1 SOURCE] IBK is launching a 500 billion won KOFR-based liquidity support loan for SMEs on October 26. thesegye.com
  • [○ 1 SOURCE] The Bank of Korea aims for KOFR-based floating rate bond issuance to exceed 50% by June 2031. www.newstomato.com

Sources

산업은행, KOFR 기반 대출상품 첫 출시…5000억원 규모 공급 [socialvalue.kr]
산업은행·기업은행, KOFR 기업대출 1조원 공급…지방기업 금리 우대 [sateconomy.co.kr]
KOFR 거래비중 12.1%, 첫 목표치 웃돌아…산은·기은 1조 대출 출시 [머니뭐니] [biz.heraldcorp.com]
한은, 지표금리 개편 속도…KOFR 거래 목표 25%로 상향 [www.newstomato.com]
IBK기업은행, 총 5000억 원 규모 KOFR 단기 유동성 지원자금 대출 출시 [thesegye.com]