Korea Technology Finance Corporation and Korea Housing Finance Corporation Join Forces to Support Scaling Up of Technology-Based SMEs in Busan, Ulsan, and Gyeongnam

Supporting Financing Through P-CBO Issuance

On December 31, the Korea Technology Finance Corporation announced that it had signed a "Financial Support Agreement for Scaling Up Technology-Based SMEs in the Busan, Ulsan, and Gyeongnam Regions" with the Korea Housing Finance Corporation at the Housing Finance Corporation's Busan headquarters the previous day.

This agreement was established to build an organic cooperative system between the two organizations and to support the smooth financing and innovative growth of technology-based SMEs in the Busan, Ulsan, and Gyeongnam regions through the issuance of Project-Collateralized Bond Obligations (P-CBOs).

Lee Sangchang, Director of the Korea Technology Finance Corporation (third from the right), and Chae Seok, Head of Management Planning at Korea Housing Finance Corporation (third from the left), along with other agreement participants, are taking a commemorative photo after signing the business agreement. Korea Technology Finance Corporation

P-CBOs are asset-backed securities issued using newly issued corporate bonds of technology-based SMEs that have difficulty raising funds on their own credit. The Korea Technology Finance Corporation provides credit enhancement to help these SMEs secure long-term funding directly from the financial market in a stable manner.

Under the agreement, the Korea Technology Finance Corporation will be responsible for discovering and screening eligible companies in the region and overseeing the overall issuance of P-CBOs, while the Korea Housing Finance Corporation will support the funding of these technology-based SMEs by acquiring the relevant P-CBOs. Both organizations also plan to cooperate in alleviating the financial burden on companies by providing financial cost reductions and support for firms included as underlying assets.

Lee Sangchang, Director of the Korea Technology Finance Corporation, stated, "We will continue to expand our cooperation with related organizations and become a strong partner supporting the innovative growth of local companies."