Korea Technology Finance Corporation to Provide KRW 1.2 Trillion in Support for SMEs Affected by Middle East Crisis... Launches Special Guarantee Program

Chairman Kim Joungho Visits Busan Headquarters

The Korea Technology Finance Corporation announced on April 15 that it held a "Special Guarantee Support Meeting for Small and Medium Enterprises Affected by the Middle East War" for field sales sites and executive staff. The meeting aimed to respond to the Middle East war crisis and to monitor the prompt execution of the supplementary budget.

Kim Joungho, Chairman of the Korea Technology Finance Corporation (first from the left), is visiting the Busan branch to inspect the sales site related to the 'Special Guarantee for Small and Medium Enterprises Affected by the Middle East War.' Korea Technology Finance Corporation

On the previous day, Kim Joungho, Chairman of the Korea Technology Finance Corporation, visited the Busan branch and held an "On-Site Preliminary Inspection Meeting" with the heads of the Busan-Ulsan-Gyeongnam regional headquarters and branch employees. He urged for rapid guarantee support to help small and medium venture enterprises facing difficulties due to the Middle East war overcome their management crises as early as possible.

Later that day, a "Special Guarantee Support Review Meeting for Small and Medium Enterprises Affected by the Middle East War" was held at the Busan headquarters, attended by regional heads and department chiefs from across the country. They focused discussions on the supplementary budget execution plan and strategies for on-site response.

The Korea Technology Finance Corporation plans to implement the special guarantee using a budget of 60 billion won reflected in the supplementary budget bill passed by the National Assembly on April 10, along with its own funds. It aims to provide a total of 1.2 trillion won in support to small and medium venture enterprises that have suffered direct or indirect damage due to the Middle East war.

This special guarantee targets: ▲ export-challenged companies that suffered direct damage such as export contract cancellations or payment delays for trade settlements due to the Middle East war; ▲ supply chain-challenged companies facing raw material supply disruptions caused by oil supply imbalances and soaring oil prices; and ▲ management-challenged companies whose competitiveness may be threatened by rising exchange rates, oil prices, and logistics costs.

The Korea Technology Finance Corporation will apply preferential measures to eligible companies, including ▲ raising the guarantee ratio (from 85% to up to 100%), ▲ reducing guarantee fees (by up to 0.4 percentage points), ▲ special calculation for operating fund guarantee amounts (up to 300 million won) and expanded calculation limits (up to 120%), and ▲ easing guarantee screening. For existing guarantees, the corporation will also support a full one-year maturity extension.

Chairman Kim stated, "In a situation where the instability in the Middle East is making business conditions difficult for small and medium venture enterprises, prompt response is more important than ever. The Korea Technology Finance Corporation will review its execution system to ensure that the special guarantees arranged through this supplementary budget are supplied in a timely manner and will actively support affected companies."

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