Hana Bank is partnering with the Korea Technology Finance Corporation (KIBO) and the Korea Credit Guarantee Fund (KODIT) to provide 200 billion won ($144.5 million) in guaranteed loans to sole proprietors aged 39 or younger and companies led by young entrepreneurs. The Y-BRIDGE Guarantee Financial Support for Youth Business Growth program offers a 100% guarantee ratio, meaning the guarantee institutions repay the full principal if a borrower defaults. Each company can borrow up to 300 million won, while Hana Bank will cover the 0.3% guarantee fee. The bank will also distribute 50,000 preferential-rate coupons for its Nae Mam Savings Account, offering eligible young business owners, entrepreneurs and employees rates of up to 6.5% a year on 12-month accounts. The initiative comes as South Korean banks increasingly use full-guarantee products, while public guarantee balances, repayments for defaults, household credit and bank interest income rise. Critics warn that repeated 100% guarantees could weaken banks’ incentives to assess borrowers’ business viability, while higher rates and expanding household lending could increase repayment burdens.