The Korea Technology Finance Corporation (Korea Technology Finance Corporation) announced on the 14th that it signed a financial support agreement with Shinhan Bank at the Shinhan Vietnam Bank headquarters in Ho Chi Minh City, Vietnam, to support companies entering the Vietnamese market. On the 15th, the company visited local companies and held a meeting to discuss their management challenges.
Vietnam is a key overseas production base for Korean companies, but companies have faced substantial difficulties due to lack of collateral and limited access to finance. This agreement aims to address these issues by linking the Korea Technology Finance Corporation's technology assessment-based guarantee support system with Shinhan Bank Vietnam's local financial network.
Under the agreement, the Korea Technology Finance Corporation (KIBO) will provide a special contribution guarantee of KRW 10 billion, funded by a KRW 500 million contribution from Shinhan Bank. Companies will benefit from an increased guarantee ratio (from 85% to 100%) and a 0.5 percentage point reduction in guarantee fees for two years. Furthermore, KIBO will provide a KRW 10 billion guarantee fee support agreement, building on Shinhan Bank's KRW 140 million guarantee fee subsidy. Shinhan Bank will also provide a 0.7 percentage point guarantee fee support for two years.
Eligible for support are new technology businesses that meet technology guarantee requirements among domestic companies that have or plan to establish overseas corporations in Vietnam, and the overseas corporations must be engaged in the same industry as the domestic companies.
Kim Jong-ho, Chairman of the Korea Technology Finance Corporation (KTFC), announced plans to “strengthen our overseas support system based on technology financing, saying that Vietnam plays a crucial role in the global supply chains and growth strategies of domestic companies.”
The Korea Technology Finance Corporation (KIBO) also visited local businesses in the Binh Duong district of Ho Chi Minh City, Vietnam, to hear about their practical challenges and plans to incorporate these findings into improvements to its SME support policies and guarantee system. Furthermore, KIBO announced plans to expand its global cooperation network targeting key ASEAN regions and establish a multilateral cooperation platform to continuously strengthen the overseas growth foundation for Korean technology companies.
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