Ministry of SMEs Supports 'Scale-up' Financing... 70 Companies, 200 Billion Won Scale
Support for Growth Funding through Asset Securitization Based on Corporate Bonds of Small and Medium Enterprises
[Asia Economy Reporter Kim Cheol-hyun] The Ministry of SMEs and Startups (Minister Park Young-sun, hereinafter referred to as the Ministry) and the Small and Medium Business Corporation (Chairman Kim Hak-do, hereinafter referred to as SBC) announced on the 8th that they are recruiting companies to participate in the '2020 1st Scale-up Finance' project to provide large-scale funding necessary for the scale-up of innovative SMEs with high growth potential.
The Scale-up Finance Support Project, which will recruit from the 9th to the 22nd, aims to support SMEs with growth potential but difficulty issuing corporate bonds on their own credit to directly raise funds through the financial market. Last year, the Ministry and SBC selected 114 SMEs through the Scale-up Finance Support Project and supported scale-up finance worth 353.6 billion KRW by issuing corporate bonds averaging about 3.1 billion KRW per company.
In this first round of Scale-up Finance Support, in preparation for the post-COVID era, the plan is to focus support not only on digital-based industries such as the non-face-to-face (untact) sector, which will be key players in the future digital powerhouse, but also on promising SMEs in core industries and investment-neglected areas to create sustainable jobs and lead future industries through scale-up. SMEs participating in the Scale-up Finance Support can raise up to 15 billion KRW over three years by issuing corporate bonds, securing stable growth resources.
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A Ministry official stated, "This Scale-up Finance Support will provide support for promising SMEs in digital-based industries such as the non-face-to-face sector to leap into unicorn companies leading the post-COVID era through direct financial procurement." Detailed information can be found on the websites of the Ministry and SBC.
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