Sinbo Signs 'Innovation Growth and Small Business Financial Support Agreement' with Industrial Bank of Korea

[Asia Economy Reporter Kwon Haeyoung] The Korea Credit Guarantee Fund (KODIT) signed a 'Business Agreement for Innovative Growth and Financial Support for Small Business Owners' with IBK Industrial Bank of Korea on the 20th.

This agreement was established to alleviate the financial burden on innovative startup companies and small business owners and self-employed individuals, and to resolve management difficulties to drive innovative growth.

Under this agreement, IBK Industrial Bank of Korea will make a special contribution of 45 billion KRW to KODIT, and KODIT will provide a total of 900 billion KRW in preferential guarantees, including 540 billion KRW for the 'Innovative Growth Agreement Guarantee' and 360 billion KRW for the 'Small Business Owners Ultra-Low Interest Agreement Guarantee.'

The support target for the Innovative Growth Agreement Guarantee is companies within 7 years of establishment in the innovative growth sector, such as those engaged in new growth engine industries. KODIT will apply preferential terms for the support target companies for 3 years, including a guarantee ratio of 90% and a 0.2 percentage point discount on guarantee fees, while IBK Industrial Bank of Korea will reduce loan interest by 1 percentage point for 8 years and waive prepayment penalties.

The support target for the Small Business Owners Ultra-Low Interest Agreement Guarantee includes promising startup companies, promising service companies, and job-creating companies among small business owners and self-employed individuals. KODIT will apply preferential terms for the support target companies for 3 years, including a guarantee ratio of 90% and a 0.4 percentage point discount on guarantee fees, while IBK Industrial Bank of Korea will apply an ultra-low interest rate at the base rate level without additional interest for 3 years and waive prepayment penalties.

A KODIT official stated, "This agreement will help innovative startup companies and small business owners experiencing management difficulties to secure smooth funding and reduce financial costs," adding, "KODIT will continue to make efforts to drive inclusive growth and innovative growth."

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