[Asia Economy Reporter Kangwook Cho] The Korea Development Bank (KDB) announced on the 2nd that it plans to launch a 300 billion KRW 'Startup Crisis Overcoming Support Program' to support startups and venture companies affected by COVID-19.
Specifically, the program will provide multi-faceted support including ▲ crisis overcoming investments, ▲ growth-sharing convertible bonds, and ▲ bridge loans targeted at startups, as well as ▲ mega venture special loans to support the scale-up of prospective unicorn companies.
KDB plans to monitor the damage situation and provide follow-up investment and financing support as needed for companies it has previously invested in to support liquidity. It will also refinance stock-related bonds (CB, BW) of invested companies and concurrently postpone the exercise of redemption rights on convertible redeemable preferred shares.
In fact, according to an internal survey conducted last month targeting KDB’s previously invested companies, 45.3% of respondents reported being affected by COVID-19, including decreased sales and delays in raw material supply.
KDB plans to significantly expand investment and financing for venture companies this year. The first quarter’s performance already reached 145.9 billion KRW, exceeding last year’s full-year support amount (125.4 billion KRW) by 1.2 times.
Alongside this, KDB is rapidly supplying funds by establishing a growth support fund worth 5.7 trillion KRW to provide large-scale venture capital to small and venture companies. As of the end of February, it has invested 1.5 trillion KRW. An additional 2.5 trillion KRW will be raised this year.
A KDB official stated, "Based on the accumulated know-how in crisis response, we will swiftly implement a strong policy finance program."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
