The Korea Technology Finance Corporation (Korea Technology Finance Corporation, Chairman Kim Jong-ho, hereinafter referred to as “KIBO”) announced on Monday, the 22nd, that it had signed a “Financial Support Agreement for Fostering Social Ventures and Promoting the Growth of the Social Solidarity Economy” with Woori Bank (CEO Jeong Jin-wan).
This agreement aims to support the stable growth of social ventures and resolve financial difficulties, and to promote the realization of ESG values and the revitalization of the social solidarity economy through collaboration between policy finance institutions and private financial institutions.
According to the agreement, Kibo will provide a total of KRW 18.5 billion in agreement guarantees based on special contributions and guarantee fee support from Woori Bank.
KIBO will provide a special contribution agreement guarantee worth KRW 6 billion, funded by a special contribution of KRW 300 million. It will also offer preferential benefits, including an increase in the guarantee ratio (from 85% to 100%, for five years) and a reduction in guarantee fees (down 0.5 percentage points, for five years). Furthermore, KIBO will provide a KRW 12.5 billion guarantee fee support agreement guarantee, based on a KRW 200 million guarantee fee support grant from Woori Bank. Woori Bank will also provide guarantee fee support (0.8 percentage points, for two years).
The target of support is companies that Kibo has identified as social venture companies, and Kibo plans to provide effective financial support to support the stable growth of social venture companies by linking social venture impact guarantees with agreement guarantees.
Kim Jong-ho, CEO of Kibo, said, “This agreement is significant in that it establishes a collaborative financial support system for social venture companies,” and added, “Kibo will continue to support the growth of social ventures as a policy finance institution and do its best to expand ESG management.”
Meanwhile, Kibo opened the Social Venture Value Assessment Center in 2018 to focus on identifying social venture companies, and is laying the foundation for the sustainable growth of social venture companies through dedicated guarantee products such as impact guarantees and various support programs.
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