The Korea Technology Finance Corporation (KIBO) announced on the 3rd that it will provide KRW 100 billion in funding through its 2025 SME Factoring Program. This support is designed to address funding challenges faced by SMEs facing challenges due to persistently sluggish domestic demand, high inflation, and high exchange rates.
Kibo has been operating the "SME Factoring Without Recourse" program since June 2022 to help SMEs with superior technology and business potential quickly convert their accounts receivable into cash without worrying about their clients' insolvency. This program has expanded liquidity support for SMEs by purchasing accounts receivable worth KRW 18.6 billion in 2022, KRW 80 billion in 2023, and KRW 100 billion in 2024.
Kibo has built its own platform to handle related tasks online, such as issuing accounts receivable, managing payments, and automatically withdrawing funds on maturity dates. Kibo operates a system that prepays the delivery price to the seller within three business days of applying for factoring and collects funds from the buyer within 90 days.
Furthermore, starting in 2025, KIBO plans to establish specialized teams in Seoul and Busan to provide more convenient service to factoring companies. These teams will handle consultations, evaluations, and purchase reviews. Furthermore, a repayment maturity extension system will be introduced in the first half of 2025 to ease the repayment burden on purchasing companies experiencing temporary operating capital difficulties.
Kim Jong-ho, Chairman of Kibo, said, “Through the SME factoring system, Kibo is supporting SMEs in securing quick liquidity, increasing the stability of transactions between purchasing and selling companies, and contributing to the expansion of shared growth.” He added, “Even in the midst of a complex economic crisis, Kibo will focus its capabilities to ensure that SMEs and venture companies can focus on their business activities with peace of mind.”
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