KOTEC and IBK Launch Financial Support for Startups Investing in Facilities

Up to 100 Billion KRW in Agreement Guarantees to Be Provided

The Korea Technology Finance Corporation (KOTEC) announced on July 25 that it has signed a financial support business agreement with the Industrial Bank of Korea (IBK) for the "Special Financial Support for Working Capital for Startups Investing in Facilities."

Through this agreement, the two institutions plan to provide up to 100 billion KRW in guarantee support, enabling startups that have completed facility investments to stably secure a foundation for future growth.

Korea Technology Finance Corporation

KOTEC will preferentially provide a special guarantee agreement worth 50 billion KRW, funded by IBK's special contribution of 2.5 billion KRW. KOTEC will offer benefits such as an increased guarantee ratio (from 85% to 90% for three years) and a reduction in guarantee fees (by 0.2 percentage points for three years). In addition, based on IBK’s guarantee fee support fund of 750 million KRW, KOTEC will supply a guarantee agreement with fee support amounting to 50 billion KRW, with IBK covering guarantee fees (0.5 percentage points for three years).

Eligible recipients are startups that meet KOTEC’s technology guarantee requirements and have received facility investment funds through IBK’s "Special Support Program for Facility Investment by Startups."

Kim Jongho, Chairman of KOTEC, stated, "We will continue to strengthen cooperation with financial institutions so that startups can achieve sustainable growth, and we will do our utmost to vitalize the startup ecosystem and establish a foundation for future growth."

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