The Korea Technology Finance Corporation (hereinafter referred to as the “KIBO”) announced on the 23rd that it signed a “Business Agreement on Financial Support for New Growth 4.0 Strategy Areas and Busan City Strategic Industry Promotion” with Busan Bank. This agreement was prepared to actively participate in the government’s major policies of “New Growth 4.0 Strategy,” “Comprehensive Export Finance Support,” and “Nine Strategic Industries Promotion in Busan.” Through the agreement, the two organizations plan to overcome the complex economic crisis, promote regional economic revitalization, and contribute to the realization of a dynamic economy.
According to the agreement, Kibo will support a 'New Growth 4.0 and Export Company Promotion Special Contribution Agreement Guarantee' worth a total of KRW 23 billion with a special contribution of KRW 1.15 billion from Busan Bank, and will apply preferential provisions such as ▲increase in the guarantee ratio (from 85% to up to 100%, for 3 years) and ▲reduction in guarantee fee (up to 0.2%p↓, for 3 years). The support targets SMEs that fall under the New Growth 4.0, export companies, creation of startup ecosystem, enhancement of SME competitiveness, and sustainable growth (ESG) fields among new technology business operators that meet Kibo's technology guarantee requirements.
In addition, Busan Bank's special contribution of 1 billion won will be used as a financial resource to support the 'Busan Regional Economic Activation Special Contribution Agreement Guarantee' worth a total of 20 billion won, and the same guarantee ratio increase and guarantee fee reduction will be applied. The target of support is small and medium-sized enterprises with their headquarters or main business locations in Busan Metropolitan City, and they can receive operating funds of up to 500 million won.
Through this agreement guarantee, Kibo plans to strengthen policy support for companies operating new growth future strategic industries and technology SMEs in the Busan region, and promote innovative growth of SMEs by reducing financial costs.
Kim Jong-ho, CEO of Kibo, said, “Through this agreement, we have been able to actively support government policies such as the New Growth 4.0 Strategy and establish support measures to foster excellent technology-oriented SMEs in the Busan region.” He added, “Going forward, Kibo will proactively participate in government policies through collaboration with relevant organizations and continue to work to strengthen the technological competitiveness of strategic industries and revitalize the local economy.”
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