Up to 300 Million Won in Support
Korea Technology Finance Corporation announced on May 23 that it has introduced and implemented a new certification and demonstration-based R&D special guarantee to promote the commercialization of research and development (R&D) achievements by small and medium-sized venture companies.
This special guarantee has been established to support companies selected for the "certification and demonstration achievement-type projects" under the Ministry of SMEs and Startups' "SME Technology Innovation Development Project" so that they can successfully complete their R&D tasks and swiftly move forward with subsequent commercialization.
The certification and demonstration achievement-type project is an R&D program in which participating companies use their own funds to first pursue objective certification and demonstration as their R&D goal, and then, based on the results, the government reimburses the R&D expenses with grants. The Ministry of SMEs and Startups plans to select and support 45 certification and demonstration-based R&D projects this year.
Korea Technology Finance Corporation will provide special guarantees of up to 300 million won, within 50% of the government-supported R&D expenses, to SMEs carrying out these projects. Preferential benefits include an increased guarantee ratio (100%) and a reduction in guarantee fees (up to 1.0 percentage point). Furthermore, companies among the supported enterprises that successfully achieve certification and demonstration will be eligible for additional follow-up commercialization funds of up to 3 billion won.
Additionally, Korea Technology Finance Corporation is providing effective financial support through a business agreement with the Korea Technology and Information Promotion Agency for SMEs and IBK Industrial Bank of Korea to expand private-led SME R&D. The Korea Technology and Information Promotion Agency for SMEs will select participating companies and increase the advance payment ratio of grants to 50%, while the bank will waive early repayment fees, thereby easing the financial burden on companies.
Korea Technology Finance Corporation expects that this collaboration and special guarantee will promote the spread of private-led technological innovation throughout the entire R&D cycle and increase the success rate of technology commercialization for SMEs.
Kim Jongho, Chairman of Korea Technology Finance Corporation, stated, "Korea Technology Finance Corporation will continue to strengthen a customized R&D support system led by the private sector through close cooperation with related organizations, and will make ongoing efforts to help small and medium-sized venture companies achieve R&D success."
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