New 'Technology Finance Program' Worth 1 Trillion KRW Established for Innovative Companies

'Technology Innovation Specialized Loan and 2nd Technology Innovation Fund Launch' Business Agreement Ceremony

[Asia Economy Reporter Joo Sang-don] On the 26th, the Ministry of Trade, Industry and Energy held a 'Business Agreement Ceremony for the Launch of Specialized Technology Innovation Loans and the 2nd Technology Innovation Fund' at Lotte Hotel Seoul with IBK Industrial Bank, Shinhan Bank, Korea Technology Finance Corporation, and others.

The specialized technology innovation loans and the 2nd Technology Innovation Fund are technology finance programs prepared by IBK Industrial Bank and Shinhan Bank, which were selected as 'Dedicated Banks for Industrial Technology Funds' to deposit and manage the Ministry's R&D funds, to support the technology innovation (R&D) activities of small and medium-sized enterprises and mid-sized companies. The purpose is to induce private investment so that our innovative companies, which are facing difficulties due to COVID-19 and other factors, can continue their technology innovation activities toward the future through effective research fund management.

In particular, the specialized technology innovation loans, newly established this year with a scale of 1 trillion won, are expected to help innovative companies' research and development (R&D) activities by operating as technology-collateralized loans centered on intangible assets such as Technology Credit (TCB) and Intellectual Property (IP), unlike the existing financial sector's real estate collateral-based loan methods. The support targets for the specialized loans are companies that have conducted R&D within the last five years or are currently conducting R&D, and for companies with low technology credit, the Korea Technology Finance Corporation provides an additional guarantee of 60 billion won, enabling many innovative companies to utilize the loans.

Also, the Technology Innovation Fund, which specializes in investing in companies' R&D activities, will enter the formation of the 2nd fund following last year. A sub-fund with a total scale of 220 billion won is planned to be formed, with demand companies such as Hyundai Motor in the future car sector, and LG Energy Solution, Samsung SDI, and SK Innovation in the secondary battery sector jointly investing.

Through this fund, approximately 3 billion won will be invested in companies promoting technology development in materials, processes, and equipment related to future cars and secondary batteries, overseas commercialization, and global technology development (including mergers and acquisitions).

At the event, Park Jin-gyu, Vice Minister of the Ministry of Trade, Industry and Energy, said, "This technology innovation finance, launched through joint investment by large corporations and the financial sector, will invigorate the industrial ecosystem and provide a growth foothold for excellent innovative companies," adding, "I hope that the public and private sectors will continue to cooperate on national issues such as carbon neutrality."

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