New Fund, 500 Billion KRW Scale Special Guarantee Supply for Innovative Venture Support

The Korea Credit Guarantee Fund (KODIT) announced on the 10th that it will provide a special guarantee of 500 billion KRW for the ‘Innovative Venture Company Convergence Support Special Guarantee.’ This is a follow-up measure to the 'Innovative Venture and Startup Funding Support and Competitiveness Enhancement Plan' announced by the government last April.

KODIT will support companies applying for guarantees by dividing them into ‘Excellent Innovative Venture Company Special Guarantee’ and ‘Promising Venture Company Special Guarantee’ according to the type of venture confirmation. The support targets are ▲venture companies with excellent growth corresponding to the venture investment type (Excellent Innovative Venture Company Special Guarantee) and ▲deep-tech, export, and R&D performance outstanding venture companies corresponding to venture investment, research and development, and innovative growth types (Promising Venture Company Special Guarantee).

In particular, through this special guarantee, KODIT plans to apply preferential guarantee limits based on sales scale compared to general guarantees, increase guarantee ratios (90~95%), reduce guarantee fees (up to 0.5 percentage points), and provide various benefits to significantly ease the financial burden on companies.

If companies supported by the special guarantee use KODIT’s accounts receivable insurance and factoring system, they can receive preferential treatment on insurance premiums and factoring discount fees. Additionally, KODIT plans to actively consider convergence support such as guarantee-linked investments and consulting for target companies.

Since starting specialized venture confirmation evaluations in 2021, KODIT has conducted venture confirmation evaluations for 3,386 companies as of June this year. A KODIT official said, “We hope this special guarantee will help venture companies struggling with recent worsening domestic and international economic conditions and shrinking private investment secure funding,” adding, “KODIT will spare no effort to provide various support so that venture companies with high technological capabilities and growth potential can wisely overcome the current crisis and create stable future growth engines.”

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