Korea Technology Finance Corporation Supports 586.5 Billion Won in Funding Through P-CBOs This Year

Scaling-Up Funds Increased by 110 Billion Won Year-on-Year
Support Provided to 33 Companies Through G-ABS Aligned with Green Taxonomy

On November 10, Korea Technology Finance Corporation announced that it had issued P-CBOs (Primary Collateralized Bond Obligations) worth 299.2 billion won in the second half of the year, supporting a total of 586.5 billion won in funding for technology-based small and medium-sized enterprises (SMEs) this year.

This year, through P-CBOs, Korea Technology Finance Corporation provided scaling-up funds to 303 technology-based SMEs, with the support amount increasing by 110 billion won compared to the previous year.

Korea Technology Finance Corporation Busan Headquarters. Korea Technology Finance Corporation

P-CBOs are securitized bonds issued by a special purpose company (SPC), which purchases newly issued corporate bonds from technology-based SMEs that have difficulty raising funds on their own credit, using these bonds as underlying assets. Korea Technology Finance Corporation provides guarantees for the obligations borne by the SPC, enabling technology-based SMEs to stably raise funds in the direct financing market.

Of the P-CBOs issued this year, 522.3 billion won was used to provide new funding, while 64.2 billion won was used to refinance existing corporate bonds. In particular, Korea Technology Finance Corporation issued 79.5 billion won of the new issuance as Green Asset-Backed Securities (G-ABS), supporting the fundraising of 33 companies engaged in economic activities aligned with the Korean Green Taxonomy.

Korea Technology Finance Corporation plans to continue issuing P-CBOs and G-ABS next year to alleviate funding difficulties for technology-based SMEs and support their scaling up, while also strengthening cooperation with related organizations to enhance the effectiveness of policy finance.

Kim Joungho, Chairman of Korea Technology Finance Corporation, stated, "We will continue to take the lead in strengthening the growth ladder for technology-based SMEs by expanding policy support, so that small and medium-sized enterprises can secure technological competitiveness in the global market and grow into mid-sized companies."

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