IBK Industrial Bank Supports Innovative Startups with Silicon Valley-Style Venture Loans

Introduction of Silicon Valley-Style Venture Loans Providing Funding Support to Promising Startups with Initial Investment in Korea

[Asia Economy Reporter Song Hwajeong] IBK Industrial Bank announced that starting from the 2nd, it will launch the 'IBK Venture Loan' product, which provides funds in the form of a bridge loan to promising startups that have difficulty obtaining general loans due to insufficient financial performance and collateral, until they secure follow-up investments.

The IBK Venture Loan is a product that IBK Industrial Bank has modified and supplemented from the Silicon Valley-style venture loans in the United States to fit the domestic environment. It offers low-interest loans to promising startups that have received investments from venture capital institutions, and the bank can share future corporate value appreciation gains by utilizing warrants attached to convertible bonds.

The IBK Venture Loan is significant in that it aims to introduce the venture finance know-how and innovative financial techniques of Silicon Valley Bank (SVB), which President Yoon Jong-won visited and consulted with during his business trip to Silicon Valley in the U.S. in April this year, to Korea for the first time. President Yoon has emphasized, "You cannot see the future with the eyes of the past. We must change the financial support paradigm based on future growth potential rather than collateral and financial indicators."

An IBK Industrial Bank official said, "Given that many startups are currently experiencing financial difficulties due to domestic and international economic uncertainties such as recent interest rate hikes, we will actively support innovative startup companies to overcome the 'death valley' and achieve sustainable growth through the IBK Venture Loan."