KOTEC and Shinhan Bank Join Forces to Support Financial Needs of Companies Entering Vietnam

Special Guarantee Agreements Worth 20 Billion KRW to Be Supplied
Financial Challenges of Local Companies in Vietnam Expected to Be Eased

On November 17, the Korea Technology Finance Corporation (KOTEC) announced that it had signed a "Financial Support Business Agreement for Companies Entering Vietnam" with Shinhan Bank. Vietnam is a key overseas production base for Korean companies, but ongoing challenges have persisted due to difficulties in securing collateral and limited access to financial services. This agreement aims to address such financial procurement issues by linking KOTEC's technology evaluation-based guarantee support capabilities with the local financial network of Shinhan Bank Vietnam, thereby establishing an effective financial support system.

Kim Joungho, Chairman of the Korea Technology Finance Corporation (right), and Kang Kyuwon, Head of Shinhan Bank Vietnam Corporation, are taking a commemorative photo after signing a business agreement. Photo by Korea Technology Finance Corporation

Under the agreement, KOTEC will provide preferential support for a special guarantee agreement totaling 10 billion KRW, funded by a special contribution of 500 million KRW from Shinhan Bank. KOTEC will offer benefits such as ▲an increased guarantee ratio (from 85% to 100%) and ▲a reduction in guarantee fees (by 0.5 percentage points for two years). Additionally, leveraging Shinhan Bank's guarantee fee support fund of 140 million KRW, KOTEC will supply a guarantee agreement worth 10 billion KRW, with Shinhan Bank supporting the guarantee fee (0.7 percentage points for two years).

The support targets are domestic companies that either have or plan to establish overseas subsidiaries in Vietnam, and that meet KOTEC's technology guarantee requirements as new technology businesses. The overseas subsidiary must operate in the same business sector as the domestic company.

Kim Joungho, Chairman of KOTEC, stated, "Vietnam is a key region for the operation of our companies' global supply chains and the implementation of growth strategies," adding, "With this agreement, KOTEC will further strengthen its technology finance-based overseas support system with a local focus, and actively support domestic technology companies in securing global competitiveness."

Meanwhile, on November 15, KOTEC visited SCM Vietnam Corporation, located in the Binh Duong area of Ho Chi Minh City, and held an on-site meeting to directly listen to the management challenges faced by companies expanding into Vietnam. KOTEC plans to reflect the feedback collected on-site in the improvement of SME support policies and guarantee systems.

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