Kibo Expands Support for Securitization Company Guarantees to 400 Billion Won This Year

Support Fund Doubled Compared to Previous Year
New Introduction of Green Asset Securitization Bonds

The Korea Technology Finance Corporation announced on the 4th that it will expand securitization company guarantees to 400 billion KRW this year and newly introduce green asset securitization bonds. This is to support small and medium-sized venture companies in securing stable funding through direct finance amid the prolonged complex economic crisis, including high interest rates.

Securitization company guarantees are a system that helps promising small and medium-sized venture companies, which find it difficult to issue corporate bonds on their own credit, to raise funds by creating securitized bonds based on new corporate bonds as underlying assets and selling them in the capital market. The new supply of securitization company guarantees of 400 billion KRW this year is twice the amount of the previous year and is focused on companies engaged in ‘New Growth Future Strategic Industries,’ which require policy and strategic support to secure future technology and industrial leadership and drive technological innovation.

‘New Growth Future Strategic Industries’ consist of five major sectors and 18 industries: ▲Advanced Manufacturing (aerospace, next-generation semiconductors, displays, batteries, materials, parts, and equipment) ▲Energy (next-generation nuclear power, hydrogen, future energy) ▲Digital, Communication, and Services (networks, security, quantum technology, knowledge services) ▲Automation (AI, mobility, robotics) ▲Bio (red, green, white bio, digital healthcare).

Additionally, from this year, Kibo plans to contribute to revitalizing the green economy by issuing about 40 billion KRW of the issuance scale as ‘Green Asset Securitization Bonds’ in collaboration with the Ministry of Environment and the Korea Environmental Industry & Technology Institute. Green Asset Securitization Bonds are securitization products that support small and medium-sized enterprises and mid-sized companies engaged in businesses that comply with the Korean Green Taxonomy (K-Taxonomy), aiming to facilitate smooth green financing for target companies. In particular, by linking with the Korea Environmental Industry & Technology Institute to support part of the interest costs, the financial burden on green economy activity companies, which have recently been struggling due to high interest rates and inflation, is expected to be significantly reduced.

Kim Jong-ho, Chairman of Kibo, said, “We will utilize Kibo’s K-Taxonomy conformity evaluation system and expertise to ensure that the newly introduced Green Asset Securitization Bonds this year practically help green economy activity companies,” adding, “We plan to continuously expand securitization company guarantees through cooperation with related organizations so that companies can raise funds in various ways.”

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