Fostering 100 Export Tech Companies
Up to 10 Billion KRW Production Funding per Company
Shinhan Bank and Korea Trade Insurance Corporation have signed a business agreement to support small and medium-sized enterprises (SMEs) and mid-sized companies in exploring overseas markets.
On the 17th, the two organizations announced that they signed a business agreement to support the activation of overseas expansion for SMEs and mid-sized companies, with Financial Services Commission Chairman Kim Joo-hyun and Minister of Trade, Industry and Energy Ahn Deok-geun in attendance. This agreement ceremony was arranged as a follow-up measure to the ‘2024 Expansion Plan for Trade Insurance Support’ announced last March, aiming to alleviate the trade finance burden on export companies.
According to this agreement, the two parties will provide preferential export financing worth a total of 1 trillion KRW to SMEs and mid-sized companies entering overseas markets for purposes such as responding to global supply chain restructuring and pioneering new markets, including funds for establishing local production facilities. Shinhan Bank will identify demand companies and offer preferential loans. Korea Trade Insurance Corporation will provide guarantees for the loan funds along with discounts on guarantee fees and support for feasibility study costs.
Kim Ju-hyun, Chairman of the Financial Services Commission (first from the right), and Ahn Deok-geun, Minister of Trade, Industry and Energy (first from the left), attended the signing ceremony of the business agreement to support the activation of overseas expansion for small and medium-sized enterprises and mid-sized companies with Jung Sang-hyuk, CEO of Shinhan Bank (second from the right), and Jang Young-jin, President of the Korea Trade Insurance Corporation (second from the left) at The Plaza Hotel in Jung-gu, Seoul, on the morning of the 17th. [Photo by Financial Services Commission]
They will also cooperate to nurture export tech companies with high export potential in terms of technology, growth, and innovation. Over the next three years, 100 domestic startups and venture companies will be selected for customized support to help them scale up and grow into global unicorns. Shinhan Bank will provide preferential investment funds through its startup nurturing program, while Korea Trade Insurance Corporation will offer a 90% discount on insurance and guarantee fees, special guarantees for production funds up to 10 billion KRW per company, and support for KOTRA’s overseas trade office residency.
Chairman Kim said, “It is highly meaningful that Korea Trade Insurance Corporation and Shinhan Bank share the information they possess and link their support programs to strengthen support for export companies,” adding, “I hope this agreement will activate collaboration between public institutions and private financial institutions so that effective support can be provided.”
Minister Ahn stated, “This agreement ceremony represents a pioneering financial cooperation model for expanding exports and overseas advancement of SMEs and mid-sized companies,” and added, “Despite the recent prolonged high interest rates and intensified supply chain restructuring weakening the fundamental strength of our SMEs and mid-sized companies, the government will concentrate all available resources and provide full support as a public-private one team to ensure that exports by SMEs and mid-sized companies expand and lead to record-breaking achievements.”
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