Kibo to Support 75 Billion Won in Guarantee-Linked Investments This Year

100 Billion KRW Support for Accounts Receivable Factoring
Efforts to Revitalize Ventures through Investment and Innovative Finance Support

The Korea Technology Finance Corporation announced on the 22nd that it will expand guarantee-linked investments and accounts receivable factoring support again this year, following last year, to assist small and medium-sized venture companies struggling with the complex financial crisis caused by high inflation and high interest rates.

To supplement the sluggish domestic venture investment market, Kibo plans to increase the scale of guarantee-linked investments to 75 billion KRW this year and expand the non-recourse accounts receivable factoring business to 100 billion KRW, actively supporting early cash conversion of accounts receivable for small and medium enterprises.

Guarantee-linked investment is a product that involves direct investment along with guarantees, with plans to invest more than 80% in startup companies and more than 60% in regional companies. In addition, the system will be improved to allow additional investments based on management performance after small investments within 500 million KRW, thereby expanding investment opportunities for early-stage startups.

Last year, venture investments in domestic ventures and startups were sluggish due to the global economic slowdown. In response, Kibo directly supported 98.1 billion KRW in investments, about twice the originally planned amount, to supply scale-up funds to innovative ventures and startups facing difficulties in attracting investments. Furthermore, Kibo also supported 80 billion KRW in the accounts receivable factoring business, which involves Kibo acquiring accounts receivable and directly providing funds to small and medium enterprises, doubling the initially planned amount.

Kim Jong-ho, Chairman of Kibo, stated, “Kibo will continue to expand investment support for companies engaged in future strategic industries and strengthen collaboration with local governments and private venture capital to lead the role of venture investment catalyst.”

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