Kibo Implements 'Patent Mutual Aid Loan'

One-Stop Processing of the Entire Loan Application to Execution Process Non-Face-to-Face

[Asia Economy Reporter Kim Cheol-hyun] The Korea Technology Finance Corporation (Chairman Jung Yoon-mo, hereinafter referred to as Kibo) announced that, building on the successful establishment of the Patent Mutual Aid launched jointly with the Korean Intellectual Property Office last August, it will implement the country's first Patent Mutual Aid Loan starting from the 27th.

The Patent Mutual Aid is open to all small and medium-sized enterprises (SMEs) and mid-sized companies, allowing monthly contributions ranging from a minimum of 300,000 KRW to a maximum of 10 million KRW per case, with up to 3 cases and a total accumulation of 1.5 billion KRW. In particular, with contribution interest rates higher than those of commercial bank savings, preferential benefits such as additional points for support projects from the Korean Intellectual Property Office, and legal advisory services, 1,409 companies joined the Patent Mutual Aid within four months of its launch, and despite the difficult economic situation caused by the COVID-19 pandemic, an additional 1,966 companies were attracted in the first half of this year, bringing the total number of participating companies to 3,375.

Since the Patent Mutual Aid Loan operates based on accumulated contributions, applications can be made only after one year of membership, and it consists of Intellectual Property Cost Loans and Management Fund Loans. The Intellectual Property Cost Loan allows borrowing at a low interest rate of 1.75% up to five times the accumulated contribution amount for expenses related to overseas patent applications and domestic and international patent trials and litigation, with repayment in installments afterward. The Management Fund Loan provides up to 90% of the accumulated contribution amount for urgent business funds. Neither the Intellectual Property Cost Loan nor the Management Fund Loan charges early repayment fees.

In particular, a non-face-to-face based Patent Mutual Aid system has been established, enabling customers to handle all processes from mutual aid subscription to loan application, contract, and extension online without visiting a branch, thereby enhancing customer convenience. Lee Jong-bae, Kibo Chairman, stated, "In the era of the 4th Industrial Revolution, where global technological competition is intensifying, innovation and preemption of technology are essential elements for corporate survival and securing national competitiveness," adding, "The Patent Mutual Aid is expected to establish itself as an intellectual property finance system that supports overseas expansion of SMEs and mid-sized companies and strengthens intellectual property protection and competitiveness by addressing policy blind spots within the framework of private mutual aid."