Kibo Signs Business Agreement with Related Organizations in Incheon to Support SMEs

Preferential Guarantees Totaling 20 Billion KRW for Local Companies in Materials and Components Industries

[Asia Economy Reporter Kim Cheol-hyun] The Korea Technology Finance Corporation (Chairman Jung Yoon-mo, hereinafter referred to as Kibo) announced on the 21st that it signed a 'Cooperative Guarantee Support Business Agreement' with Incheon Metropolitan City (Mayor Park Nam-chun), Incheon Regional Small and Medium Venture Business Administration (Director Shin Seung-sik), and Incheon Technopark (Director Seo Byung-jo) at Michuhol Tower located in Yeonsu-gu, Incheon.

This business agreement was prepared to support companies engaged in the materials and parts industry located in the Incheon area. The agreement institutions agreed to actively promote regional economic revitalization by establishing a customized collaboration system to foster the materials and parts industry and build a foundation for the innovative growth of technology SMEs.

The target companies for support are SMEs located in Incheon that have been established within the last seven years, companies engaged in the materials and parts industry under the Special Measures Act on Fostering Materials and Parts Specialized Companies, and innovative growth companies according to the joint innovation growth standards prepared by policy financial institutions.

To this end, Incheon City will make a special contribution of 1 billion KRW to Kibo, and Kibo will provide cooperative guarantees worth 20 billion KRW using Incheon City's contribution as funding. Support will be provided up to 500 million KRW per company, and the guarantee ratio will be increased from 85% to 100%. The guarantee fee will be reduced by 0.2 percentage points annually for five years. The Incheon Regional Small and Medium Venture Business Administration will cooperate with related organizations to expand support for local SMEs, and Incheon Technopark will promote the cooperative guarantee support project and provide consultation support.

Kibo Director Kim Young-chun stated, "This business agreement is significant as a collaboration model between local governments and business support organizations," and added, "We will actively support fostering strong small and medium-sized materials and parts companies in the Incheon area and revitalizing the regional economy."