Special Zone Foundation and KIBO Extend 'Preferential Guarantee' to Advanced Technology Companies

Advanced technology companies within research and development zones will now also be eligible for preferential guarantee support.

The Research and Development Special Zone Promotion Foundation (the Foundation) announced on the 28th that it has decided, together with the Korea Technology Finance Corporation (KIBO), to include advanced technology companies as eligible for preferential guarantee support in order to strengthen growth support for these companies.

The expansion of preferential guarantee support aims to provide the benefits, previously limited to research institute spin-off companies, to advanced technology companies with a high level of technological intensity. This is intended to help technology-based companies within the zones secure stable funding, thereby accelerating technology commercialization and market entry.

Advanced technology companies refer to those designated by the Minister of Science and ICT under Article 12-3 of the Enforcement Decree of the Special Act on the Promotion of Research and Development Zones, which produce and sell highly innovative products within the zone.

The designation requirements include: ▲ being located within a research and development zone ▲ generating at least 20% of total sales from advanced technology products ▲ spending at least 3-5% of total sales on research and development (R&D) expenses.

The Foundation plans to select and discover outstanding companies that produce and sell designated advanced technologies or products, and that meet the requirements for R&D expenses and advanced technology product sales, from among the 14,588 zone-based companies (as of December 2023) located in the five major metropolitan zones-Daedeok, Gwangju, Daegu, Busan, and Jeonbuk-and 14 smaller specialized zones across the country, in order to encourage their designation as advanced technology companies.

KIBO will expand the benefits previously limited to research institute spin-off companies to advanced technology companies, applying differentiated guarantee limits of up to 2 billion KRW depending on the technology evaluation grade. In addition, preferential measures such as increasing the guarantee ratio (up to 100%) and reducing the guarantee fee rate (up to 0.5 percentage points) will help advanced technology companies smoothly secure funds for technology commercialization and reduce their financial costs.

Companies wishing to receive preferential guarantee support among research institute spin-off companies and advanced technology companies can apply through KIBO's digital branches or nationwide business offices.

Jung Heekwon, Chairman of the Foundation, stated, "By expanding preferential guarantee support, we will create a foundation for technology-intensive companies to stably secure funds and invest more boldly in research and development and commercialization," adding, "The Foundation will continue to strengthen the connection between finance and commercialization to drive the sustainable growth of the technology-based industrial ecosystem."

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