Gibo-Gwangsan-gu Office-Gwangju Bank Sign 'Financial Support Agreement for Technology SMEs'

Preferential Guarantee Support Worth 10 Billion Won for Small and Medium Enterprises in Gwangsan-gu

(From left) Kim Young-chun, Director of Kibo; Kim Sam-ho, Mayor of Gwangsan District Office; and Song Jong-wook, President of Gwangju Bank, are signing the 'Financial Support Agreement for Technology SMEs.'

[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 'Business Agreement for Financial Support of Technology SMEs' with Gwangsan District Office and Gwangju Bank.

This agreement was established to support smooth funding for small and medium-sized enterprises (SMEs) affected by the novel coronavirus infection (COVID-19) through cooperation between basic local governments and regional banks, and to back the innovative growth of promising SMEs located in the provinces.

The target companies for support are technology innovation-leading companies and COVID-19 affected companies engaged in manufacturing located in Gwangsan District, Gwangju Metropolitan City. To this end, Gwangsan District Office will make a special contribution of 500 million KRW to Kibo, and Kibo will use the special contribution fund to provide preferential guarantees worth a total of 10 billion KRW to target companies by increasing the guarantee ratio (100%) and reducing guarantee fees (0.2 percentage points annually for 5 years). Gwangju Bank will further ease the financial burden by supporting guarantee fees (0.5 percentage points) and reducing loan interest rates (at least 0.7 percentage points) for companies guaranteed by Kibo.

Kibo Director Kim Young-chun said, "This agreement is the first public-private win-win cooperation model introduced through collaboration with basic local governments and regional banks to support local SMEs, and it is a much-needed exemplary case of coexistence at this time as it aims to support local SMEs affected by COVID-19." He added, "Kibo will do its best to develop local industries by preparing specialized guarantee products for local SMEs recently struggling due to COVID-19 damage, taking this cooperation with Gwangsan District Office and Gwangju Bank as an opportunity."

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