Financial Services Commission Selects 1,043 Innovative Growth Companies... 92% Are Small and Medium Enterprises
[Asia Economy Reporter Song Hwajeong] The Financial Services Commission announced on the 6th that it has selected 1,043 innovative growth companies through collaboration with 12 ministries (Industry, SMEs, Science and ICT, Welfare, Oceans, Land, Culture, Environment, Patents, Defense, Agriculture and Food, Customs).
The Financial Services Commission has been implementing a program since July 2020 to support companies selected by relevant ministries through their own evaluations for high innovation. As of the end of July this year, policy financial support totaling 9.5 trillion KRW (loans, guarantees, investments) has been provided to 660 companies selected so far.
The 1,043 selected companies include various fields such as advanced manufacturing, information and communication, and energy. More than 44% are early-stage companies within 7 years of establishment, and over 92% are SMEs.
For the selected innovative growth companies, when applying for loans, the operating fund limits are expanded and interest rate benefits are applied compared to general companies. Considering innovation and technological aspects, interest rates are reduced by up to 0.9 to 1.0 percentage points. For guarantees, within the upper limits (Korea Credit Guarantee Fund 15 billion KRW, Korea Technology Finance Corporation 10 billion KRW), the guarantee ratio is increased from 85% to 95%, and the guarantee fee rate is reduced by 0.4 percentage points.
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Since more than 1,000 innovative growth companies have been selected, the Financial Services Commission plans to introduce an In&Out system for more substantial operation of the program. Accordingly, each ministry will evaluate the technological innovation efforts, future growth potential, financial and non-financial performance of the selected innovative growth companies every half year, excluding companies with weakened future growth potential from the selected list and selecting new innovative growth companies.
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