Seoul City and Shinbo Sign Agreement to Support Fintech Startups ... Up to 300 Million KRW Preferential Guarantee

[Asia Economy Reporter Jo In-kyung] Among fintech companies struggling with management difficulties such as sales decline and investment fund delays due to the sharp contraction of consumer sentiment caused by the spread of the novel coronavirus infection (COVID-19), those established within the last 7 years will receive funding support of up to 300 million KRW.

Seoul Metropolitan Government and the Korea Credit Guarantee Fund (KODIT) announced on the 12th that they signed a "Business Agreement for Supporting Fintech Startups" on the 11th and will support fintech startups for three years. The main contents of the agreement include financial support for excellent startups in the fintech sector and mutual cooperation to revitalize the fintech industry.

Accordingly, KODIT will first provide preferential guarantees up to 300 million KRW based on the expected required funds of fintech startups residing in the "Seoul Fintech Lab" operated by Seoul City. Through preferential guarantees, it is expected that these resident companies will receive financial support effects of at least 6.6 billion KRW.

In particular, selected companies will receive customized support up to 300 million KRW according to the amount needed by the company, regardless of sales and equity capital limits. Additionally, only selected companies will be offered the best preferential benefits such as 100% full guarantee and a fixed guarantee fee rate of 0.5%.

Seoul City plans to strengthen various collaborations with KODIT starting with this funding support cooperation. The city will give additional points when promising startups recommended by KODIT move into Seoul Fintech Lab, and KODIT will enhance financial support for startups residing in Seoul Fintech Lab, thereby expanding investment in the fintech industry.

Kim Ui-seung, Director of Seoul City’s Economic Policy Office, said, "Financial support through this agreement will relieve the financial difficulties of startups desperately needing funds," and added, "We will discover and focus investment on innovative fintech startups to quickly respond to the post-COVID-19 non-face-to-face trend and turn the crisis into an opportunity."

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