Cheonan City Partners with Korea Technology Finance Corporation to Support Startups... 5.4 Billion KRW Preferential Guarantees

Cheonan City in Chungnam has joined hands with the Korea Technology Finance Corporation (KOTEC), an institution under the Ministry of SMEs and Startups, to support technology startups. This is the first such case outside the Seoul metropolitan area.

According to the city on the 31st, Mayor Park Sangdon of Cheonan signed a 'Financial Support Agreement for Fostering Technology Startups' with Chairman Kim Jongho of KOTEC the previous day.

Under this agreement, KOTEC will provide preferential guarantees totaling 5.4 billion KRW, allowing companies to receive up to 500 million KRW in working capital loans.

Eligible companies must have their headquarters or main business location in Cheonan for at least one year and be technology-based startups established within the past seven years. For three years, a 100% guarantee ratio will be applied, and the guarantee fee will be reduced by 0.2%.

Applications for preferential guarantees can be submitted at the Cheonan branch of KOTEC starting from mid-November.

Mayor Park said, "This agreement is expected to be a great support for local startups with excellent technology that are struggling to commercialize due to lack of funds," adding, "We will provide administrative and financial support so that startups can grow into unicorn companies."