The Korea Technology Finance Corporation (KIBO) announced plans to expand its facility financing guarantee support to address the deteriorating business environment caused by high interest rates, the shrinking facility investment environment, and the economic downturn, and to encourage corporate investment. KIBO plans to implement preferential facility financing support for this year only and improve its guarantee system to actively provide guarantees at all branches, thereby encouraging corporate investment in facilities.
Companies eligible for preferential facility financing support are those in KIBO's key support areas: ▲New Growth 4.0 ▲Local Companies ▲Exporters. KIBO plans to apply a fixed guarantee rate of 1.0% to these companies, alleviating the financial burden on facility investment companies. Furthermore, KIBO will streamline the internal review process to expedite guarantee support and relax credit rating requirements for facility financing guarantees subject to full termination, thereby strengthening policy support for companies in key sectors facing funding difficulties.
Kim Jong-ho, Chairman of the Board of Directors of Kibo, said, “Kibo is focusing its policy capabilities on overcoming the economic crisis by actively supporting the expansion of facility investment in key areas and resolving management difficulties faced by small and medium-sized enterprises (SMEs) due to worsening external conditions.” He added, “We will continue to prepare various support measures to expand customized financial support for the growth of SMEs and economic revitalization.”
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