KOTEC and Shinhan Bank Join Forces to Support Venture Investment Innovation Companies

Up to 20 Billion Won in Special Guarantee Agreements
Supporting the Scaling Up of Innovative SMEs

On January 14, the Korea Technology Finance Corporation (KOTEC) announced that it has signed a "Venture Investment Innovation Company Investment-Linked Financial Support Business Agreement" with Shinhan Bank, aiming to strengthen financial support for innovative small and medium-sized enterprises (SMEs).

This agreement was established to minimize funding gaps for promising SMEs that have attracted venture investment, to link private investment with policy finance, and to vitalize the venture capital ecosystem, thereby realizing productive finance.

Busan Namgu Technology Guarantee Fund Headquarters

Under the agreement, KOTEC will provide up to 20 billion won in special guarantee agreements, using Shinhan Bank's 1 billion won special contribution as the funding source. KOTEC will offer benefits such as increasing the guarantee ratio from 85% to 100% for three years.

Eligible recipients include new technology business operators who meet KOTEC's technology guarantee requirements, specifically: unlisted SMEs that have attracted at least 500 million won in investment from venture capital institutions within seven years of founding; and unlisted SMEs with a technology business evaluation grade of BB or higher that have attracted at least 2 billion won in investment within the past two years.

Through this agreement, the two organizations plan to establish a joint support system to ensure that innovative companies can operate their funds stably even before securing follow-up investments.

Kim Joungho, Chairman of KOTEC, stated, "This agreement is significant in that it establishes a financial support foundation to help innovative companies overcome the so-called 'Death Valley' period and secure the liquidity necessary for growth at the right time. KOTEC will continue to expand collaboration with related organizations to create a financial ecosystem where small and venture businesses can grow stably."