Patent Office "Intellectual Property Collateral Loan 'Safety Net', Recovery Support Organization Launched"

Intellectual Property Collateral Recovery Support Project Operation System. Provided by the Korean Intellectual Property Office

[Asia Economy (Daejeon) Reporter Jeong Il-woong] A support organization that will serve as a safety net for intellectual property-backed loans is being launched. With the launch of this organization, bank transactions using intellectual property are expected to become more active, and it will be much easier for companies to secure business funds through intellectual property.

The Korean Intellectual Property Office (KIPO) announced on the 18th that it held the launching ceremony of the "Intellectual Property Collateral Recovery Support Organization (hereafter IP Recovery Support Organization)" at the Korea Intellectual Property Center located in Gangnam-gu, Seoul.

The IP Recovery Support Organization will purchase intellectual property at up to 50% of the value when insolvency occurs in innovative and venture companies that have received intellectual property-backed loans, compensating the losses of banks that executed the collateral loans. It will also play a key role in generating revenue through licensing, sales, and other means using the acquired intellectual property.

KIPO expects that the launch of the IP Recovery Support Organization will activate intellectual property-backed loans and increase opportunities for innovative and venture companies to raise commercialization funds based on their own technologies.

In fact, the scale of intellectual property-backed loans has increased from 88.6 billion KRW in 2018 to 433.1 billion KRW last year. KIPO interprets that the confirmation of the IP Recovery Support Organization's launch last year influenced the rapid increase in intellectual property-backed loans.

Earlier, KIPO established the legal basis for the establishment of the IP Recovery Support Organization through the amendment of the Invention Promotion Act last year and officially launched it this year by allocating the budget.

Park Won-joo, Commissioner of KIPO, said, "We will strive to create a sound intellectual property finance ecosystem where innovative companies can raise funds through intellectual property," adding, "Especially this year, we will focus our policy efforts on activating intellectual property financial investment."