The Korea Technology Finance Corporation (hereinafter referred to as the “KIBO”) announced on the 14th that it had signed a “Financial Support Agreement for Overcoming the Crisis of Key Industries and Strengthening Export and Technology Competitiveness” with Woori Bank and Hana Bank (in alphabetical order, hereinafter referred to as the “Affiliated Banks”).
The purpose of this agreement is to help small and medium-sized enterprises operating in key industries overcome the crisis they are experiencing amidst continued economic uncertainty, and to promote innovative growth by strengthening their export and technological competitiveness. To this end, Kibo and the contracting banks plan to provide up to KRW 810 billion in contract guarantees through special contributions and guarantee fee support.
According to the agreement, Kibo will provide preferential support for special contribution agreement guarantees worth KRW 180 billion based on the special contribution of KRW 9 billion from the agreement bank. In addition, Kibo will provide benefits such as raising the guarantee ratio from the existing 85% to 100% and lowering the guarantee fee by 0.2%p for three years.
In addition, Kibo will provide a guarantee support agreement guarantee worth KRW 630 billion based on the KRW 6.3 billion in guarantee support funds from the partner banks, and the partner banks will support the guarantee fee (0.5%p, for 2 years).
The support target is small and medium-sized enterprises that fall into the fields of overcoming the crisis of key industries, strengthening export competitiveness, strengthening technological competitiveness, creating a startup ecosystem, strengthening the competitiveness of small and medium-sized enterprises, and sustainable growth (ESG) among new technology business operators that meet the technology guarantee requirements of Kibo.
Kim Jong-ho, CEO of Kibo, said, “Through this agreement, we have provided practical support to ease the financial burden of materials, parts, and equipment industries and export companies that are struggling amid economic uncertainty.” He added, “We will continue to strengthen policy support for key industries and respond to overcome management crises of small and medium-sized enterprises and enhance export competitiveness.”
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