KB Kookmin Bank Signs MOU with Credit Guarantee Fund to Provide 71 Billion KRW in Guaranteed Loans

KB Kookmin Bank announced on August 20 that it has signed a "Financial Support Agreement for Innovative Startups" with the Credit Guarantee Fund and will begin supporting startups with high growth potential but lacking in creditworthiness and collateral.

At the business agreement ceremony held at the headquarters of the Korea Credit Guarantee Fund in Dong-gu, Daegu, Chae Byungho, Director of the Korea Credit Guarantee Fund (right), and Song Yonghun, Vice President of the Corporate Customer Group at KB Kookmin Bank, are posing for a commemorative photo. Photo by KB Kookmin Bank

Under this agreement, KB Kookmin Bank will contribute 1 billion KRW as a guarantee fee support fund, which will be used to provide guarantee-backed loans totaling approximately 71 billion KRW. Eligible companies will receive a 0.7 percentage point guarantee fee subsidy each year for two years. Considering that the standard guarantee fee rate for the Credit Guarantee Fund's startup products is about 0.7%, beneficiary companies will effectively be exempt from guarantee fees for the first two years.

Eligible recipients include companies participating in the Credit Guarantee Fund's "Innovative Startup Growth Support Program." The support covers all national strategic industries prioritized by the government, including artificial intelligence (AI), biohealth (Bio), digital contents (Contents), defense technology (Defence), renewable energy (Energy), and smart manufacturing (Factory).

A representative from KB Kookmin Bank stated, "We will continue to provide various forms of support so that small and medium-sized enterprises, which will drive Korea's future growth, can maintain their technology-driven development."

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