Gibo-Gwangju Bank Signs 'Support Agreement for Companies in Materials and Components Industry'

Preferential Guarantee Support Worth a Total of 10 Billion KRW for Material and Component Companies

On the 6th, Song Jong-wook, President of Gwangju Bank (left), and Jo Gyu-dae, Executive Director of Kibo, signed a "Financial Support Business Agreement for Innovation Growth in the Materials and Components Industry" at the Gwangju Bank headquarters.

[Asia Economy Reporter Kim Cheol-hyun] The Korea Technology Finance Corporation (Chairman Jung Yoon-mo, hereinafter referred to as Kibo) announced on the 9th that it has signed a 'Financial Support Business Agreement for Innovation Growth in the Materials and Components Industry' with Gwangju Bank and will actively cooperate in fostering and supporting the materials and components industry.

This business agreement was prepared to support companies engaged in the materials and components industry, and the two institutions agreed to establish a customized collaboration system to actively strengthen the competitiveness of specialized materials and components companies, create jobs, and support innovation growth. The target companies for support are those requiring proactive social support, including ▲companies affected by the novel coronavirus infection (COVID-19) ▲companies engaged in the materials and components industry ▲job-creating companies ▲companies in the innovation growth sector, and Kibo plans to provide preferential guarantees worth a total of 10 billion KRW through the 'Special Contribution Agreement Guarantee.' To this end, Gwangju Bank will make a special contribution of 500 million KRW to Kibo, and Kibo will use Gwangju Bank's special contribution funds to support target companies with ▲preferential guarantee rates (100%) ▲reduction of guarantee fees (0.2 percentage points annually for 5 years), among other benefits.

In addition to this agreement, Kibo is actively supporting the securing of core technologies and enhancing industrial competitiveness of materials and components companies by participating as a dedicated management institution in the selection of 100 promising small and medium enterprises in the materials and components industry. Executive Director Cho Gyu-dae of Kibo stated, "Through collaboration with Gwangju Bank, Kibo will support job creation and innovation growth of strong small and medium enterprises in the materials and components sector and fulfill its role as a financial support platform that proactively responds to key government issues such as COVID-19 damage."

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