KOTEC and Busan Bank to Provide 43 Billion KRW in Preferential Support for New Growth Future Strategic Industries

KOTEC and Busan Bank Sign Agreement
to Support New Growth 4.0 Sectors
and Busan’s Strategic Industries

On January 23, Korea Technology Finance Corporation (KOTEC) announced that it had signed a "Financial Support Agreement for New Growth 4.0 Strategic Sectors and Busan City Strategic Industry Development" with Busan Bank.

Under the agreement, KOTEC will use a special contribution of 1.15 billion KRW from Busan Bank as a funding source to provide a total of 23 billion KRW in "Special Contribution Agreement Guarantees for New Growth 4.0 and Export Company Development." The preferential terms include an increased guarantee ratio (from 85% to up to 100% for three years) and a reduction in guarantee fees (up to 0.2 percentage points for three years). Eligible companies are new technology businesses that meet KOTEC's technology guarantee requirements and are engaged in one of the following areas: New Growth 4.0, export company support, startup ecosystem development, strengthening SME competitiveness, or sustainable growth (ESG) within the SME sector.

Additionally, KOTEC will use a special contribution of 1 billion KRW from Busan Bank as a funding source to provide a total of 20 billion KRW in "Special Contribution Agreement Guarantees for Revitalizing the Busan Regional Economy." The preferential terms include an increased guarantee ratio (from 85% to up to 100% for three years) and a reduction in guarantee fees (up to 0.2 percentage points for three years). Eligible companies are new technology businesses that meet KOTEC's technology guarantee requirements and are small and medium-sized enterprises headquartered or primarily operating in Busan Metropolitan City, which can receive up to 500 million KRW in operating funds.

KOTEC plans to use these agreement guarantees to strengthen policy support for companies operating in new growth future strategic industries and technology-based SMEs in the Busan region, while reducing financial costs to drive innovative growth among SMEs. Kim Jongho, Chairman of KOTEC, stated, "Through this agreement, we are actively supporting government policies such as the New Growth 4.0 Strategy and have established support measures for fostering outstanding technology-based SMEs in the Busan region." He added, "KOTEC will continue to take a leading role in government policies through collaboration with related organizations, and will make ongoing efforts to strengthen the technological competitiveness of strategic industries and revitalize the regional economy."