Jungjingong Growth-Sharing Loans Play a Key Role as a Catalyst for Private Follow-up Investment

Cumulative Private Follow-up Investment Reaches 1.2 Trillion KRW
Follow-up Investment Attraction This Year Totals 217.8 Billion KRW

[Asia Economy Reporter Kim Cheol-hyun] The Small and Medium Business Corporation (Chairman Kim Hak-do, hereinafter referred to as SBC) announced on the 27th that the cumulative amount of private follow-up investments attracted by companies supported with growth-sharing loans since 2008 has reached 1.2203 trillion KRW.

Growth-sharing loans are a representative investment-financing hybrid financial project that supports funds through convertible bonds (CB) and redeemable convertible preferred stocks (RCPS) to companies with high potential for initial public offering (IPO) by evaluating technological performance and future growth potential. SBC has supported a total of 802 companies with 675.4 billion KRW from 2008 to the present.

This year, due to the prolonged COVID-19 pandemic making face-to-face investment attraction briefings difficult, SBC fully switched to a non-face-to-face follow-up investment attraction support method using an online platform. Through this, a total of 217.8 billion KRW in follow-up investments were attracted, an 18% increase compared to 184 billion KRW last year. Additionally, investment attraction briefings were held to enhance the investment appeal of supported companies and lead them into the direct financial market. As a result, four companies including Enchem succeeded in listing on the KOSDAQ market this year.

SBC plans to further strengthen support for private follow-up investment attraction for promising innovative growth companies. The number of investment attraction briefings will be expanded to six times a year, with schedules regularized and conducted as themed briefings considering company age and industry. Specifically, the non-face-to-face method using an online video platform will be expanded, and the SBC-hosted 'KOSME IR Mart' will be held six times instead of three. To continuously attract interest and participation from investors and companies seeking investment, the event schedule will be regularized to the third Friday of even-numbered months and held regularly.

Chairman Kim Hak-do said, "SBC proactively supports promising companies with funds, playing a role as a catalyst for private follow-up investments and producing results such as IPOs. Next year, we will actively support the innovative growth and corporate value enhancement of companies supported by growth-sharing funds by regularly holding non-face-to-face investment attraction briefings and themed investment attraction briefings."

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