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Woori to spend $6.9 billion on loans, rate cuts for tariff-impacted businesses

Published: 09 Apr. 2025, 15:03 Updated: 09 Apr. 2025, 18:53

KIM JU-YEON
[email protected]

Pictured is Woori Financial Group's office in Jung District, central Seoul, on March 17. [YONHAP]

Woori Financial Group on Wednesday pledged to invest 10.2 trillion won ($6.9 billion) to help domestic firms that rely on exports as the market panics over the “reciprocal” tariffs U.S. President Donald Trump declared earlier this month.

The company plans to spend most of the money to alleviate costs for tariff-impacted firms. Funds will support loans, rate cuts and commission payments, particularly those in semiconductors and auto, Woori said in a press release.

The decision came out of a task force, headed by Woori Financial Group Chairman Yim Jong-yong, that has been monitoring fallout from the reciprocal tariffs and to prepare aid measures.

A total of 2.9 trillion won will benefit preexisting programs, with 2.3 trillion won funding loan guarantees for firms that export or import goods, such as automobiles and chips. Two hundred billion won will aid small businesses that are particularly affected by high currency exchange rates and the slowdown in domestic demand.

An additional 7.3 trillion won has been earmarked for tariff-affected firms. 6.7 trillion won will help cut interest rates, as well as commissions for those paying interest rates higher than 5 percent, for companies that the tariff will impact; 500 billion won will set up a special loan program for semiconductor and auto manufacturers; and 100 billion won will be allocated for a maximum 500 million won loan program for other impacted firms.

Woori Financial Group's banking, card and capital subsidiaries are looking into additional means of supporting firms that trade overseas and will roll out measures accordingly.

“We intend to provide tailored, pinpointed support for industries and companies directly impacted by reciprocal tariffs,” said Bae Yeon-su, head of corporate group senior management at Woori Bank.

“Among sectors heavily affected by tariffs, such as automobiles, steel and chips, we will prioritize assisting companies with high export volume to the United States. This will include diverse measures like additional loans, extensions of repayment periods without principal payments and preferential interest rates.”

BY KIM JU-YEON [[email protected]]