Kibo, SME 'Joint Purchase Exclusive Guarantee' Support of 40 Billion KRW

Signed Agreement with Related Organizations for 'Joint Purchase Exclusive Guarantee' to Ease Cost Burden

On the 25th, Kibo signed the 'Exclusive Guarantee Agreement for Joint Purchasing of Small and Medium Enterprises' at the Small and Medium Business Central Association in Yeouido, together with the Small and Medium Business Central Association, IBK Industrial Bank, Korea Credit Guarantee Fund, and Korea Credit Guarantee Foundation. From the left: Jung Yun-mo, Chairman of the Korea Technology Finance Corporation; Yoon Dae-hee, Chairman of the Korea Credit Guarantee Fund; Kim Ki-moon, President of the Small and Medium Business Central Association; Yoon Jong-won, President of IBK Industrial Bank; Kim Byung-geun, Chairman of the Korea Credit Guarantee Foundation.

[Asia Economy Reporter Kim Cheol-hyun] The Korea Technology Finance Corporation (Chairman Jung Yoon-mo, hereinafter Kibo) announced that on the 25th, it signed a "Financial Support Agreement for the Activation of Joint Purchasing of Small and Medium Enterprises" at the Small and Medium Business Central Association in Yeouido with the Korea Federation of SMEs (Chairman Kim Ki-moon), IBK Industrial Bank of Korea (President Yoon Jong-won), Korea Credit Guarantee Fund (Chairman Yoon Dae-hee), and Korea Credit Guarantee Foundation Central Association (Chairman Kim Byung-geun) to cooperate in enhancing purchasing competitiveness through joint purchasing of raw and subsidiary materials for SMEs.

The "Joint Purchase Exclusive Guarantee" is a collaborative project introduced in 2018 among SME support organizations to address the lack of purchasing power for raw and subsidiary materials and payment stability for SMEs. The Korea Federation of SMEs and IBK Industrial Bank of Korea make special contributions to guarantee institutions, which in turn support SMEs' raw and subsidiary material purchases through preferential guarantees.

Through this agreement, Kibo plans to receive a special contribution of 2 billion KRW from the Korea Federation of SMEs and IBK Industrial Bank of Korea and provide a total of 40 billion KRW in guarantees this year to SMEs wishing to jointly purchase raw and subsidiary materials. This represents an increase of 10 billion KRW compared to last year, expanding support in response to the growing demand.

Last year, Kibo implemented the "SME Raw and Subsidiary Materials Joint Purchase Agreement Guarantee" system, providing preferential measures such as increasing the guarantee ratio (from 85% to 95%) and reducing guarantee fees (by 0.5 percentage points) to companies participating in joint purchases, supporting a total of 45.8 billion KRW in guarantees for 128 companies by April this year. Chairman Jung Yoon-mo of Kibo stated, "Through this agreement, SMEs will be able to reduce the burden of purchasing raw and subsidiary materials for mass production, which is expected to help reduce corporate costs. Kibo will prepare various support and win-win cooperation plans so that more SMEs can demonstrate their innovative capabilities by securing purchasing competitiveness."

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