Kibo Significantly Lowers Patent Mutual Loan Interest Rates to Overcome COVID-19

Intellectual Property Cost Loan Reduced by 0.5%p, Management Fund Loan Reduced by 1.0%p

[Asia Economy Reporter Kim Cheol-hyun] The Korea Technology Finance Corporation (KOTEC) is significantly lowering the interest rates on patent mutual aid loans to overcome the crisis caused by the novel coronavirus infection (COVID-19). KOTEC (Chairman Jeong Yun-mo) announced on the 31st that, together with the Korean Intellectual Property Office, it will temporarily reduce the loan interest rates for companies receiving patent mutual aid loans for six months from the 1st of next month until the end of February next year, for one year.

The patent mutual aid project is an intellectual property finance system designed to alleviate the burden of intellectual property costs and intellectual property (IP) dispute risks for small and medium-sized enterprises (SMEs) and mid-sized companies caused by domestic and international patent disputes and overseas applications, and to support overseas expansion. Since KOTEC launched the patent mutual aid project in August last year, over 4,000 companies have joined by the end of August this year, leading to a successful establishment and the implementation of patent mutual aid loans last month.

KOTEC has prepared support measures to temporarily apply an interest rate of 1.25% for intellectual property cost loans, reduced by 0.5 percentage points compared to the end of July, and 2.25% for management fund loans, reduced by 1.0 percentage point, for one year after the loan for companies applying for mutual aid loans to ease their financial burden.

This is expected to provide substantial benefits to companies with mutual aid loans compared to market interest rates. For example, Biwon Video Technology Research Institute, the first company to receive an intellectual property cost loan, plans to cover the costs incurred from filing overseas patents in multiple countries such as the United States, China, and Europe through this loan, reducing financial burdens and strengthening global technological competitiveness. A company representative said, "Timely funding for overseas patent applications will greatly help generate profits by securing technological competitiveness," they anticipated.

Director Lee Jong-bae of KOTEC said, "Patent mutual aid loans are expected to contribute to the activation of overseas expansion of technology-capable small and medium-sized venture companies and the prevention of technology infringement," adding, "Through this interest rate reduction to overcome the COVID-19 crisis, it is expected to establish itself as an intellectual property finance system that supports overseas expansion of SMEs and mid-sized companies, protects intellectual property, and strengthens competitiveness."

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