Financial Services Commission to Remove Barriers Between Policy Financial Institutions for Intensive Support of Promising Ventures

Vice Chairman Kwon Daeyoung Holds Meetings in Ulsan and South Gyeongsang Province
Small Loan Approval Process Streamlined for National Growth Fund Recipients

The government has decided to remove the barriers between policy financial institutions supporting venture companies, thereby providing businesses with increased investment opportunities. In addition, the approval process for small loans to local small and medium-sized enterprises (SMEs) and mid-sized companies supported by the National Growth Fund will be streamlined.

On February 27, Kwon Daeyoung, Vice Chairman of the Financial Services Commission, announced these policies during regional meetings with venture companies and local discussions on the National Growth Fund and preferential local finance in Ulsan and South Gyeongsang Province. These events are part of a two-day field meeting, following a visit to Daegu and North Gyeongsang Province the previous day.

Vice Chairman Kwon stated, "Until now, companies nurtured by a particular policy financial institution found it difficult to utilize programs offered by other institutions. Moving forward, we will open and connect incubation programs among policy financial institutions." He added, "We will establish a system that first presents incubation programs aligned with each company's growth stage, such as financial support, mentoring, and overseas expansion support, so that more businesses can benefit from these opportunities."

Currently, the venture support programs of policy financial institutions are dispersed among initiatives such as 'Next One' by KDB Korea Development Bank, 'IBK Changgong' by IBK Industrial Bank of Korea, 'Nest' by Korea Credit Guarantee Fund, and 'D.Camp' by Banks Foundation for Young Entrepreneurs. The government plans to expand opportunities so that competitive companies can receive investment from large venture capital (VC) firms, regardless of the supporting institution or region. In addition, the government will continuously establish new incubation facilities, especially outside the Seoul metropolitan area, to further support local companies. Detailed plans will be announced in March.

The previous day, Vice Chairman Kwon visited ISU Specialty Chemical, which had been selected for the National Growth Fund's "ultra-low interest loan" project, and inspected the site where new facilities will be built with support from the fund. The National Growth Fund will provide the company with a long-term loan of 100 billion won at an interest rate in the low 3% range for 10 years.

At the subsequent regional meeting, Vice Chairman Kwon discussed plans to expand investment in the Southeast region by KDB Korea Development Bank, ways for Hanwha Aerospace to utilize the National Growth Fund in the space and aviation sectors, and South Gyeongsang Province's investment plans for building artificial intelligence (AI) data centers. He also introduced plans to simplify the approval process for small loans to local SMEs and mid-sized companies through the National Growth Fund.

Vice Chairman Kwon emphasized, "The Southeast region is a driving force for Korea's growth, not only in key industries such as automobiles and shipbuilding, but also in foundational industries like petrochemicals and steel." He continued, "We will spare no effort in supporting the Southeast region, so that it can become a global hub for next-generation high-tech industries through the National Growth Fund."

This content was produced with the assistance of AI translation services.