Kibo Supports Innovative Growth and Globalization of SMEs with Four Banks

Agreement Guarantee Worth Up to 857.1 Billion KRW Using Bank Contribution Funds

On the 1st, the Korea Technology Finance Corporation (Kibo) announced that it signed a "Financial Support Agreement for the Dynamic Innovation Growth and Globalization of Small and Medium Enterprises" with four banks: Kookmin, Nonghyup, Woori, and Hana.

According to the agreement, Kibo will preferentially support special contribution guarantee agreements worth 350 billion KRW, funded by 17.5 billion KRW in special contributions from the four banks. Benefits such as ▲increased guarantee ratio (from 85% to 100%) and ▲reduced guarantee fees (0.2 percentage points decrease for 3 years) will be provided to reduce financial costs for SMEs and drive innovative growth.

Additionally, based on 6.5 billion KRW in guarantee fee support funds from the banks, Kibo will support guarantee fee support agreements worth 507.1 billion KRW. The agreement banks will also support part of the guarantee fees (0.5 to 0.7 percentage points reduction), supplying up to 857.1 billion KRW in guarantee agreements through special contributions and guarantee fee support.

The eligible companies for support are SMEs that meet Kibo's technology guarantee requirements and fall under the categories of ▲New Growth 4.0 ▲Export Company Support ▲Startup Ecosystem Creation ▲SME Competitiveness Enhancement ▲Sustainable Growth (ESG).

Kim Jong-ho, Chairman of Kibo, stated, “Through collaboration with major banks, Kibo will expand financial support for companies engaged in new growth future strategic industries and export companies, and promote globalization.” He added, “Going forward, Kibo will continue to support the successful implementation of government national tasks and do its best to create a vibrant livelihood economy.”