KDB Industrial Bank Provides 1 Trillion KRW Funding in H1 to New Industry Innovation Companies

"Expanding Support for Innovative Companies by Applying a New Evaluation System"

[Asia Economy Reporter Kangwook Cho] Korea Development Bank announced on the 24th that it provided 1 trillion won in funding to new industry innovation companies in the first half of this year.

Since August 2018, Korea Development Bank has introduced and operated a new industry innovation company evaluation system that analyzes companies' innovation capabilities and growth potential. Through this system, it has supported a total of 40 cases and 1.5 trillion won in funding for innovative small and medium-sized enterprises and mid-sized companies in policy-driven sectors such as non-face-to-face industries like e-commerce, the BIG 3 fields including system semiconductors, bio, future cars, and the culture and knowledge service industries.

In particular, despite the deteriorated financial conditions in the first half of this year due to the outbreak of COVID-19, the bank operated a customer-centered new industry evaluation and supported 21 cases with 1 trillion won (16 cases for small businesses, about 700 billion won) for innovative companies.

Korea Development Bank explained that it shifted the evaluation paradigm from past practices focused on business performance and collateral to a comprehensive analysis method considering the innovativeness of new technologies and business models, industrial and market ripple effects, future growth potential, and market reputation. Additionally, in terms of evaluation methods, it operates an open evaluation system where companies directly participate and a multi-faceted evaluation system involving market experts in the relevant fields.

Along with this, considering the high risk characteristics of new industries, the bank strengthened a system to timely provide necessary funds to companies recognized for innovation and growth potential but currently in the process of commercialization or at the early market stage with minimal sales or cash flow from business activities, through the operation of a specialized 'New Industry Evaluation Team' dedicated to evaluating new industry innovation companies.

A Korea Development Bank official emphasized, "Through this innovation company support system, we will actively support the cultivation of future promising new industry innovation companies in the post-COVID-19 era."

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