Expansion of Technology Guarantee Targets to Assets Under 500 Billion Won

[Asia Economy Reporter Kim Jong-hwa] The asset ceiling for companies eligible for technology guarantees will be expanded from under 100 billion KRW to under 500 billion KRW, and the limit on guarantee-linked investment amounts by the Korea Technology Finance Corporation (Kibo) will also be abolished.

The Ministry of SMEs and Startups announced that the amendment to the Enforcement Decree of the Technology Credit Guarantee Fund Act, containing these changes, passed the Cabinet meeting on the 23rd. This amendment will take effect immediately upon promulgation following the President's approval.

With the asset ceiling for new technology businesses eligible for Kibo's technology guarantees raised to under 500 billion KRW, companies in sectors such as non-face-to-face industries and new technology convergence industries, whose assets have grown beyond 100 billion KRW and previously could not receive additional support, will now be able to continuously receive guarantee support without interruption.

The limit on guarantee-linked investment amounts by Kibo will also be removed. Companies guaranteed by Kibo can receive investments up to 3 billion KRW per company while the guarantee relationship is established. However, the investment scale was restricted to within twice the guaranteed amount, which meant that early-stage startups with relatively small guarantee amounts had to accept insufficient support even if they wanted to receive adequate investment from Kibo.

With this amendment to the Enforcement Decree, Kibo will be able to expand investments in areas where private investment does not reach, such as early-stage startups and promising regional companies.

Lee Ok-hyung, Director of the Venture Innovation Policy Division at the Ministry of SMEs and Startups, expressed expectations that "this amendment to the Enforcement Decree of the Technology Credit Guarantee Fund Act will help create an ecosystem that promotes corporate growth by enabling Kibo to take the lead in supplying growth finance to excellent technology innovation companies."