Implementation of 'Crowdfunding Preferential Guarantee' to Revitalize Kiboh and Private Investment

Leading the Activation of Crowdfunding as a New Financing Method for Innovative Startup Companies

[Asia Economy Reporter Kim Cheol-hyun] The Korea Technology Finance Corporation (Chairman Jung Yoon-mo, hereinafter referred to as Kibo) announced on the 29th that it will implement the 'Crowdfunding Preferential Guarantee' to support the innovative growth of startups that have succeeded in crowdfunding, which is gaining attention as a new funding channel.

Crowdfunding is a method by which startups and others raise funds from numerous small investors. Since the implementation of the crowdfunding system in January 2016, 585 companies have raised a total of 112.8 billion KRW over the past four years, drawing attention as a new funding method for innovative startups.

The Crowdfunding Preferential Guarantee targets small and medium-sized enterprises that have succeeded in securities-type crowdfunding through crowdfunding intermediaries such as Wadiz or Crowdly, with a successful funding amount of 50 million KRW or more and have achieved at least 80% of their investment target amount.

Kibo will support technology guarantees up to 300 million KRW within twice the amount of the investment attraction amount by assessing the funds required for technology development or commercialization and the successful crowdfunding amount for these companies. Additionally, preferential benefits such as increased guarantee ratios, a 0.3 percentage point reduction in guarantee fees, and relaxed approval authority have been applied to enable related companies to receive support more easily and quickly.

Director Kim Young-chun of Kibo stated, "For successful startups, it is crucial to discover creative ideas and lead them to the commercialization stage, so the activation of crowdfunding is very important for startups lacking funding capabilities," and "We will faithfully perform the role of a connecting link by introducing mutual recommendation systems with crowdfunding intermediaries and financial institutions so that crowdfunding can promote startups and establish itself as a growth support system for innovative companies."

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