KOTEC and Hana Bank Sign Business Agreement for Financial Support to Foster Promising SMEs

Preferential Support for Agreement Guarantees
Totaling 6 Billion Won

On May 30, Korea Technology Finance Corporation (KOTEC) announced that it had signed a "Business Agreement for Financial Support to Foster Promising Small and Medium Enterprises and Create a Venture Ecosystem" with Hana Bank.

This agreement was established to build a close collaborative system between the two organizations, support the stable business activities of promising small and medium venture enterprises, help overcome internal and external uncertainties, and contribute to the creation of a sustainable venture ecosystem.

Under the agreement, KOTEC will provide preferential support for a special guarantee program totaling 6 billion won, using 300 million won in special contributions from Hana Bank as the funding source. The support targets small and medium enterprises that qualify as venture companies among new technology businesses that meet KOTEC's technology guarantee requirements.

Eligible companies can receive up to 500 million won in operating funds and will also benefit from various preferential terms, including an increased guarantee ratio (from 85% to up to 100% for three years) and a reduced guarantee fee (up to 0.3 percentage points lower for three years).

Through this agreement, the two organizations plan to strengthen policy support to help promising venture companies facing difficulties in attracting investment and securing funding, reduce their financial burdens, and support their growth into self-sustaining enterprises.

Kim Jongho, Chairman of KOTEC, stated, "This agreement has established a systematic cooperation plan to foster outstanding small and medium venture companies that are struggling amid uncertain economic conditions at home and abroad." He added, "KOTEC will continue to strengthen the growth foundation of promising small and medium venture companies through collaboration with related organizations and expand customized policy support to create a sustainable corporate growth ecosystem."