KOTEC Offers Preferential Guarantees for Advanced Technology Companies in Special R&D Zones

Strengthening Support for Advanced Technology Companies
Leading the Foundation for National Strategic Industries

On October 28, Korea Technology Finance Corporation (KOTEC) announced that it has implemented a "preferential guarantee program for research institute spin-offs and advanced technology companies" to support the growth of high-tech enterprises and strengthen the foundation of national strategic industries.

This preferential guarantee program was established to strengthen the financial support base for companies with strong technological innovation capabilities to grow independently, by expanding the scope of support from existing research institute spin-offs to include advanced technology companies.

Through this preferential guarantee, KOTEC will provide benefits such as applying differentiated guarantee limits based on technology business evaluation grades (up to 2 billion KRW), increasing the guarantee ratio (up to 100%), and reducing guarantee fees (up to 0.5 percentage points). These measures are designed to actively support excellent technology companies in securing funds smoothly and alleviating financial burdens.

The eligible recipients are research institute spin-offs and advanced technology companies. Advanced technology companies are designated by the Minister of Science and ICT under the "Special Act on the Promotion of Special Research and Development Zones." These are companies located within research and development zones that produce and sell products in technology-intensive and rapidly innovating fields such as information and communication technology, biotechnology, and nanotechnology.

KOTEC expects that the implementation of this program will promote research and development and technology commercialization for advanced technology companies, contribute to the creation of new industries in high-tech sectors, and enhance the competitiveness of national strategic industries. Kim Joungho, Chairman of KOTEC, stated, "The growth of advanced technology companies leading technological innovation is the very source of national technological competitiveness," adding, "KOTEC will continue to discover outstanding technology companies and strengthen customized financial support to actively facilitate the global expansion and sustainable growth of innovative technology companies."