Gibo Provides 540 Billion KRW Preferential Guarantee Support to Innovative Growth Companies and Small Business Owners

IBK and Signing of 'Innovation Growth and Small Business Financial Support MOU'

[Asia Economy Reporter Kim Cheol-hyun] The Korea Technology Finance Corporation (Chairman Jung Yoon-mo, hereinafter referred to as Kibo) announced on the 20th that it has signed a business agreement with Industrial Bank of Korea to facilitate smooth funding and reduce financial burdens for innovative growth companies and small business owners, implementing preferential guarantees such as 'Low-Interest Loan Agreement Guarantee' and 'Ultra-Low-Interest Loan Agreement Guarantee.'

According to this agreement, Industrial Bank of Korea will make a special contribution of 27 billion KRW to Kibo, and Kibo will use the funds contributed by the bank to support preferential guarantees totaling 540 billion KRW, including 360 billion KRW for innovative growth companies and 180 billion KRW for small business owners and self-employed individuals. The Low-Interest Loan Agreement Guarantee is a product that supports start-ups within 7 years engaged in innovative growth industries with up to 1 billion KRW. Kibo will reduce the guarantee fee by 0.2 percentage points, and Industrial Bank of Korea will reduce the final calculated loan interest rate by 1.0 percentage point when lending. The Ultra-Low-Interest Loan Agreement Guarantee is a product supporting small business owners and self-employed individuals with up to 100 million KRW. Kibo will reduce the guarantee fee by 0.4 percentage points, and Industrial Bank of Korea will apply the base interest rate as the loan interest rate when lending.

This agreement represents a collaboration between the two institutions to discover and support innovative growth companies and small business owners facing management difficulties, and it is expected to contribute to overcoming management crises and strengthening competitiveness for these groups. Kim Young-chun, a director at Kibo, stated, "Through this agreement, Kibo plans to actively support innovative growth companies and small business owners with excellent technological capabilities and growth potential," adding, "We will continue to prepare inclusive financial systems and support measures to help alleviate management difficulties for small and medium-sized enterprises and contribute to national economic development."

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