Kibo Signs Business Agreement with Busan City to Foster Innovative Growth Technologies for SMEs

Support for Regional Balanced New Deal by Busan City, Busan Small and Medium Business Administration, and Busan Bank

(From left) Kim Young-chun, Director of Kibo; Kim Yoon-il, Deputy Mayor for Economic Affairs of Busan; Son Dae-jin, Head of Credit Sales Division at Busan Bank; and Kim Moon-hwan, Director of Busan Small and Medium Business Administration, are posing for a commemorative photo after the agreement ceremony.

[Asia Economy Reporter Kim Cheol-hyun] The Korea Technology Finance Corporation (Chairman Jung Yoon-mo, hereinafter Kibo) announced on the 23rd that it signed a 'Public-Private Joint Business Agreement for Supporting Policy Funds for Innovative Growth Technology SMEs for the Innovative Growth of SMEs and the Leap of Busan Economy' with Busan Metropolitan City, Busan Regional Small and Medium Venture Business Administration, and Busan Bank.

This agreement was prepared to establish a comprehensive support system by linking government ministries, local governments, public institutions, and regional financial institutions to promote the innovative growth of SMEs in the Busan area and the regional economic leap through the expansion of the regional balanced New Deal project.

Kibo and Busan Bank plan to support the innovative growth of Busan's technology SMEs by establishing a financial support foundation for SMEs engaged in regional key industries based on the agreement guarantee, and through linkage support with Busan City's interest subsidy support project and Busan Regional Small and Medium Venture Business Administration's government policy projects.

Based on Busan Bank's special contribution fund of 2.5 billion KRW, Kibo will provide preferential guarantees worth a total of 50 billion KRW with a maximum limit of 3 billion KRW per company through preferential measures such as ▲increasing the guarantee ratio (85%→100%) and ▲reducing the guarantee fee (down by 0.2 percentage points). In addition, companies that apply for the agreement guarantee at Kibo and simultaneously apply for Busan City's interest subsidy project can receive support for a loan interest rate reduction of 0.8 percentage points under the conditions of a lump-sum repayment after a 3-year grace period or installment repayment over 1 year after a 2-year grace period, with a limit of 300 million KRW per company through screening.

Kim Young-chun, director of Kibo, said, "Through this agreement, we will promptly provide funds to Busan's innovative growth technology SMEs," and added, "Kibo will actively support the success of the regional balanced New Deal project and the innovative growth of regional technology SMEs through agreements with more local governments."