Business Agreement Signed with Incheon Metropolitan City and Incheon Technopark
Preferential Guarantee Ratio and Fee Reduction Conditions Applied
Korea Technology Finance Corporation announced on July 22 that it will sign a business agreement for the 'Technology Innovation Enterprise Jump-Up Program' with Incheon Metropolitan City and Incheon Technopark.
This agreement was promoted to alleviate the financial burden on outstanding technology-based small and medium-sized enterprises (SMEs) in the Incheon region, and to establish a cooperative system to promote technological innovation and provide a stable foundation for growth. The three organizations plan to jointly identify SMEs with strong technological capabilities and support their growth by enhancing access to funding through preferential guarantees and interest subsidy-linked financial support.
Under the agreement, Korea Technology Finance Corporation will provide up to KRW 100 billion in preferential guarantees, based on KRW 2 billion in interest subsidy funds supported by Incheon Metropolitan City. Korea Technology Finance Corporation will apply preferential conditions, including an increased guarantee ratio (from 85% to 90% for three years) and a reduction in guarantee fees (up to 0.3 percentage points for three years). Incheon Metropolitan City will provide interest subsidies (2 percentage points per year for one year) to outstanding technology companies selected by Korea Technology Finance Corporation, which is expected to effectively reduce the actual financial costs for SMEs.
The support targets are technology innovation-leading companies that have factories or business sites in Incheon and meet both the technology guarantee requirements of Korea Technology Finance Corporation and the interest subsidy requirements of Incheon Metropolitan City. The maximum support limit is KRW 1 billion per company, and companies with a technology business evaluation grade of A or higher can receive preferential support of up to KRW 3 billion.
Kim Jongho, Chairman of Korea Technology Finance Corporation, stated, "We will continue to strengthen cooperation with local governments to enhance technological innovation capabilities in the region and do our best to contribute to economic revitalization by restoring vitality to local industries."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
