Kibo, Special Guarantee to Support Companies Affected by Heavy Rainfall

Emergency Safety Measures Meeting Held
Support for Small Business Damage Recovery

The Korea Technology Finance Corporation (Chairman Kim Jong-ho, hereinafter Kibo) announced on the 20th that it will hold an emergency safety countermeasure meeting to support small and medium-sized enterprises (SMEs) affected by heavy rain and implement the 'Special Guarantee for Disaster-Affected SMEs' (hereinafter Special Guarantee).

The Special Guarantee is a preferential guarantee support program introduced to alleviate temporary financial difficulties of SMEs affected by nationwide heavy rain and to promote rapid business normalization. It provides emergency funds to ▲ SMEs confirmed as disaster-affected by the government or local governments ▲ SMEs approved for disaster recovery-related funds ▲ companies whose damage has been confirmed through Kibo's on-site investigation. Companies that have received guarantees for heavy rain damage-related funds from the Korea Credit Guarantee Fund are excluded from support.

Through this Special Guarantee, Kibo applies a fixed guarantee fee rate of 0.1% for working capital up to 500 million KRW and facility funds within the required amount in special disaster areas. In general disaster areas, the combined working capital and facility funds are supported up to 300 million KRW with a fixed guarantee fee rate of 0.5%. For related guarantees, Kibo plans to minimize the financial burden on affected companies and provide funds quickly by ▲ increasing the guarantee ratio (from 85% to 90%) and ▲ relaxing guarantee screening criteria.

Kibo will also support full maturity extensions without repayment for guarantees currently used by affected companies to prevent financial difficulties at the disaster sites and strive for complete business normalization. Kim Jong-ho, Chairman of Kibo, said, "Kibo will thoroughly monitor the damage situation based on its nationwide sales network to ensure the prompt normalization and resumption of business activities of SMEs, the backbone of our economy, and will devote all resources to supporting the Special Guarantee, fulfilling its role as a dedicated support institution for small and medium venture businesses."

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