The Industrial Bank of Korea and Woori Bank have been selected as R&D fund providers by the Ministry of Trade, Industry and Energy yesterday. The two banks will provide 300 billion won in low-interest loans annually for small businesses through the government’s R&D budget.

Chiefs of the two banks and Industry Minister Yoon Sang-jick signed a partnership yesterday.

IBK and Woori Bank will receive 3.6 trillion won from the ministry this year and manage the fund.

If the fund makes a profit, the banks will cut interest rates of loans for small businesses by 2.8 percentage points. The banks will also set up task forces consisting of experts to provide consultation for small enterprises on business management, family inheritance, taxation, accounting and patents.

IBK also is preparing a savings product that jibes with the government’s creative economy initiative.

Every three years, the ministry plans to choose among commercial banks to administer the low-rate R&D loans.