Gibo Signs 'Technology SME Win-Win Financial Support Business Agreement' with Incheon City

Incheon City Provides Preferential Guarantee Support Worth 100 Billion KRW to Technology SMEs

Incheon Mayor Park Nam-chun (left) and Jung Yoon-mo, Chairman of the Korea Technology Finance Corporation, are taking a commemorative photo after the signing ceremony.

[Asia Economy Reporter Kim Cheol-hyun] The Korea Technology Finance Corporation (Chairman Jeong Yun-mo, hereinafter referred to as Kibo) announced on the 5th that it signed the 'Incheon City Technology SME Win-Win Financial Support Business Agreement' with Incheon Metropolitan City (Mayor Park Nam-chun) to revitalize the local economy struggling due to COVID-19.

This business agreement was prepared as a special financial support measure for SMEs located in Incheon City that are experiencing difficulties due to COVID-19. Kibo and Incheon City will establish a customized collaboration system to actively promote the development of the materials and parts industry, build a foundation for the innovative growth of technology SMEs, and revitalize the local economy.

The target companies for support are SMEs located in Incheon City, including ▲ companies engaged in materials and parts industries ▲ technology innovation leading companies (venture companies, INNO-BIZ companies, companies engaged in innovative growth industries) ▲ companies engaged in aviation and logistics industries ▲ companies affected by COVID-19 ▲ companies engaged in water industry ▲ companies commercializing patent rights, etc.

Last year, Incheon City became the first local government to invest 2 billion KRW in Kibo, which supported 262 technology SMEs with 40 billion KRW in agreement guarantees based on this. This year, Incheon City also invested 2 billion KRW last month to continue supporting agreement guarantees and plans to invest an additional 1 billion KRW through supplementary budgeting.

Kibo plans to support a total of 100 billion KRW in agreement guarantees, up to 500 million KRW per company, by applying preferential benefits such as ▲ increasing the guarantee ratio (from 85% to 100%) ▲ reducing guarantee fees (0.2 percentage points reduction annually for 5 years) using Incheon City's investment funds as resources.

Jeong Yun-mo, Chairman of Kibo, said, "This business agreement has great significance as a collaboration model with local governments," and added, "We will support job creation and innovative growth of technology SMEs in the Incheon region through agreement guarantee support."