Kibo, Busan Bank to Provide 50 Billion KRW Preferential Support for Shipbuilding and Marine Equipment Industry

Discovering Super-Gap Shipbuilding and Maritime Technologies

The Korea Technology Finance Corporation announced on the 14th that it has signed a "Win-win Business Agreement to Strengthen the Competitiveness of the Busan Shipbuilding and Marine Equipment Industry" with Busan Bank and the Busan Shipbuilding and Marine Equipment Industry Cooperative.

Through this agreement, the three organizations will discover shipbuilding and marine equipment companies with excellent local technology and provide customized financial support. This is to secure a super-gap in shipbuilding and marine technology and revitalize the local foundational industries.

According to the agreement, Kibo will preferentially support a special guarantee agreement with a total scale of 50 billion KRW, funded by a special contribution of 2.5 billion KRW from Busan Bank. Kibo plans to reduce financial costs and drive innovative growth for local shipbuilding and marine equipment companies by applying preferential terms such as ▲increasing the guarantee ratio (from 85% to up to 100% for 3 years) and ▲reducing guarantee fees (up to 0.2 percentage points decrease for 3 years). The cooperative can discover shipbuilding and marine equipment companies with excellent technology and recommend them to Busan Bank.

The supported companies are small and medium-sized enterprises engaged in the shipbuilding and marine equipment industry, headquartered or with their main business office in Busan Metropolitan City, and meeting Kibo’s technology guarantee requirements as new technology businesses. They can receive up to 500 million KRW in working capital support, and if they qualify as recipients of Busan City's interest subsidy support, they can receive interest rate reductions linked with policy funds.

Kim Jong-ho, Chairman of Kibo, said, “As a policy financial institution born in Busan, Kibo will actively facilitate smooth funding for shipbuilding and marine equipment companies in the Busan area under this agreement,” adding, “We will continue to take a leading role in Busan’s economic policies to strengthen the technological competitiveness of local foundational industries and revitalize the economy.”