The Korea Technology Finance Corporation (Korea Technology Finance Corporation, Chairman Kim Jong-ho, hereinafter referred to as “KIBO ”) announced on Monday, the 3rd, that it had signed a “Financial Support Agreement for Expanding Investment-Linked Funding for Innovative Startups” with the Industrial Bank of Korea (President Kim Seong-tae, hereinafter referred to as “IBK”).
This agreement was established to support scale-up by providing timely technology development and commercialization funds to promising technology startups that have attracted investment from venture capital firms, and to revitalize the venture investment ecosystem.
Under the agreement, Kibo will provide up to KRW 100 billion in special contribution agreement guarantees, funded by a KRW 5 billion special contribution from Industrial Bank of Korea. Kibo will also offer preferential benefits, including an increase in the guarantee ratio (from 85% to 100% for three years). Industrial Bank of Korea will also alleviate the financial burden on innovative and startup companies by offering preferential loan interest rates (up to 1.5 percentage points).
The support target is a new technology business operator that meets the technology guarantee requirements of the Korea Development Bank, among which ▲unlisted small and medium-sized enterprises that have attracted an investment of KRW 500 million or more from venture capital institutions within 7 years of establishment ▲unlisted small and medium-sized enterprises with a technology business evaluation rating of BB or higher that have attracted an investment of KRW 2 billion or more within 2 years.
Through this agreement, the two organizations plan to expand financial support to ensure startups can secure the necessary funds stably before proceeding with subsequent investment rounds, and to closely cooperate to build a growth ladder for technology startups and revitalize the venture ecosystem.
Kim Jong-ho, CEO of Kibo, said, “Through this agreement, the foundation has been laid for innovative startups that have attracted investment to overcome the valley of death and secure liquidity in a timely manner.” He added, “Going forward, Kibo will expand collaboration with relevant organizations to resolve financial difficulties faced by technology startups and take the lead in creating an ecosystem that enables startups to grow stably.”
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