Kibo and NongHyup Financial Join Hands to Support Innovative Growth of SMEs and Ventures

Preparing Comprehensive Collaboration Measures
in Response to Global Tariffs

The Korea Technology Finance Corporation (KOTEC) announced on the 18th that it has signed a "Business Agreement to Strengthen Technology Finance Support for Small and Medium Venture Businesses" with NH Nonghyup Financial Group.

This agreement was established to proactively support small and medium venture businesses facing difficulties amid uncertainties in the global trade environment, such as the impact of U.S.-origin reciprocal tariffs, and to back their management stabilization and innovative growth.

Through this agreement, the two organizations plan to build a comprehensive collaboration system across various fields including technology finance, investment, and consulting, and to enhance both financial and non-financial support to improve the financial accessibility of small and medium venture businesses.

Kim Jong-ho, Chairman of Kibo (right), and Lee Chan-woo, Chairman of NH Nonghyup Financial Group, are posing for a commemorative photo after signing a business agreement. Photo by Kibo

Additionally, KOTEC has signed a separate detailed agreement with Nonghyup Bank to supply up to KRW 65.7 billion in agreement guarantees through special contributions and guarantee fee support. KOTEC will support KRW 30 billion worth of special contribution agreement guarantees using KRW 1.5 billion in special contribution funds and provide preferential benefits such as an increase in the guarantee ratio (from 85% to 100% for three years) and a reduction in guarantee fees (0.2 percentage points decrease for three years). Furthermore, based on KRW 500 million in guarantee fee support funds from Nonghyup Bank, KOTEC will supply KRW 35.7 billion worth of guarantee fee support agreement guarantees, while Nonghyup Bank will support guarantee fees (0.7 percentage points for two years).

The support targets are new technology businesses that meet KOTEC’s technology guarantee requirements, including ▲companies engaged in advanced technology industries such as artificial intelligence (AI), nuclear power, autonomous driving, aerospace, defense, and bio ▲small and medium enterprises in competitive support industries such as semiconductors, secondary batteries, electric vehicles, renewable energy, steel, shipbuilding, and cosmetics.

Kim Jong-ho, Chairman of KOTEC, said, "Through this agreement, KOTEC, a leading institution in technology finance, and NH Nonghyup Financial Group, one of the five major financial holding companies, have joined forces to proactively respond to changes in the global trade environment and establish measures to support the recovery of competitiveness in advanced technology industries." He added, "KOTEC will continue to expand collaboration with financial institutions to actively support small and medium venture businesses so that they can sustain growth despite uncertain domestic and international economic conditions."