KOTEC to Provide 180 Billion Won in New Guarantees for AI Industry Development This Year

Focused Support for Six Key Growth Engines Including AI

The Korea Technology Finance Corporation (KOTEC) announced on September 11 that it will strengthen its support for the artificial intelligence (AI) sector to back the government's national agenda and new industry development strategies, as well as to establish a foundation for the sustainable growth of innovative companies.

KOTEC has designated the AI sector as a key area for support. As part of this effort, in May, it launched a specialized guarantee product for AI, aiming to narrow the global gap in the AI industry and actively support small and medium-sized venture companies in their transition to artificial intelligence (AX). This year, KOTEC plans to newly supply 180 billion won in funding to the AI sector and allocate 90 billion won in the second half of the year to proactively respond to the funding needs of AI companies.

The AI-specialized guarantee product, "AI·AX Competitiveness Enhancement Preferential Guarantee," offers various benefits to companies developing, introducing, or utilizing AI technologies, including an increased guarantee ratio (up to 95%), guarantee fee reductions (up to 0.3 percentage points), and expanded special calculation provisions. In addition, through the "Semiconductor Industry Enterprise Special Guarantee," KOTEC supports core funding needs such as R&D and equipment localization for outstanding technology companies in the semiconductor field, including fabless companies, offering benefits such as a maximum guarantee limit of 20 billion won, an increased guarantee ratio (up to 95%), and guarantee fee reductions (up to 0.3 percentage points).

Furthermore, to alleviate the financial burden on companies, KOTEC plans to expand collaboration with commercial banks and operate global expansion programs, including overseas expansion guarantees and investment attraction through its overseas branches, to actively support the scaling up of AI companies.

Kim Jongho, Chairman of KOTEC, stated, "KOTEC is proactively supporting future growth engines through dedicated products for the artificial intelligence sector, in line with the government's innovation-driven growth strategy." He added, "KOTEC will continue to faithfully fulfill its role as a policy finance institution that enhances the nation's technological competitiveness and supports the innovative growth of small and medium-sized venture companies."