The Korea Technology Finance Corporation (hereinafter referred to as the “KIBO”) announced that it will provide a guarantee of 40 billion won this year in accordance with the “Technology SME Guarantee Support Agreement” signed with Incheon Metropolitan City (hereinafter referred to as “Incheon City”).
This agreement guarantee was prepared to foster the materials, parts, and equipment industries in the Incheon area, to lay the foundation for innovation and growth of small and medium-sized technology companies, and to contribute to the revitalization of the local economy. It is planned to support small and medium-sized business fostering funds of KRW 40 billion, an increase of KRW 10 billion from the previous year.
The support target is companies that meet the technology guarantee requirements of the Korea Development Bank and whose main business site and factory are located in Incheon City. The specific targets are ▲ companies operating in the materials and components industry ▲ companies leading technological innovation ▲ companies operating in the aviation and logistics industry ▲ companies commercializing patent rights ▲ Incheon Innovation Plus (+) companies ▲ companies operating in future strategic industries such as semiconductors, etc.
According to the agreement, the maximum support limit per company is KRW 1 billion for Incheon Innovation Plus (+) companies and KRW 500 million for other companies. New guarantees are treated as a 100% full guarantee and a 0.2%p guarantee fee is reduced for 5 years. However, listed companies on the stock market or KOSDAQ, companies in the process of closing down, and companies in arrears with taxes are excluded from support.
Cheon Chang-ho, CEO of Kibo, said, “Since signing a business agreement with Incheon City in January 2020, Kibo has provided 220 billion won in guarantees to 1,183 companies with 11 billion won contributed by Incheon City by 2024,” and added, “We will continue to strengthen cooperation with Incheon City and take the lead in scaling up excellent local technology SMEs and revitalizing the local economy.”
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