The Korea Technology Finance Corporation (Korea Technology Finance Corporation, Chairman Kim Jong-ho, hereinafter referred to as “KIBO”) announced on Friday the 5th that it had signed a “Business Agreement to Strengthen Productive Finance Supply to SMEs and Enhance Global Competitiveness” with Kookmin Bank (CEO Lee Hwan-joo).
This agreement was promoted to establish a systematic financial support plan to strengthen the technological competitiveness and build a growth ladder for promising small and medium-sized venture companies, and to vitalize productive finance by linking policy financing with private financing.
Under the agreement, KIBO will provide a special contribution guarantee of KRW 100 billion, funded by a KRW 5 billion special contribution from Kookmin Bank. KIBO will provide benefits such as an increase in the guarantee ratio (from 85% to 100% for three years) and a reduction in the guarantee fee (down 0.3 percentage points for three years).
In addition, Kibo will provide a guarantee support agreement worth KRW 100 billion based on KRW 2 billion in guarantee support funds from Kookmin Bank, and Kookmin Bank will support the guarantee fee (1.0%p, for 2 years).
Eligible for support are new technology businesses that meet the technology guarantee requirements of the Korea Institute of Finance (KIBO), have received a certificate of benefit (or planned benefit) from the Korea SMEs and Startups Agency's policy funds, or are in areas that require strengthening national industrial competitiveness. These areas are divided into five categories: ▲Strengthening technological competitiveness in key industries, ▲Strengthening export competitiveness in key industries, ▲Strengthening SME competitiveness, ▲Creating a startup ecosystem, and ▲Sustainable growth (ESG).
Through this agreement, the two organizations plan to actively support the strengthening of corporate global competitiveness and innovative growth by increasing financial accessibility for small and medium-sized enterprises and alleviating the burden of financial costs.
Kim Jong-ho, Chairman of Kibo, said, “With this agreement, a financial support system that strengthens links with public policy funds has been established, further solidifying the growth ladder for SMEs.” He added, “Going forward, Kibo will actively support the global expansion and technology-led growth of SMEs by strengthening cooperation with public and private financial institutions.”
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