Korea Technology Finance Corporation and Woori Bank Join Forces to Boost SME M&A with Financial Support

Supply of Agreement Guarantees Worth 41.4 Billion Won

Korea Technology Finance Corporation announced on April 22 that it has signed a "Financial Business Agreement for Supporting M&A to Promote Corporate Succession and Technological Innovation" with Woori Bank.

This agreement was established in line with the government's policy to revitalize mergers and acquisitions (M&A), aiming to support smooth corporate succession and technological innovation for small and medium-sized enterprises. The goal is to prevent business closures and build a sustainable foundation for growth.

Under the agreement, Korea Technology Finance Corporation will provide special guarantee support worth 20 billion won, funded by Woori Bank's special contribution of 1 billion won. The corporation will offer benefits such as an increased guarantee ratio (from 85% to 100% for three years) and a reduction in guarantee fees (by 0.3 percentage points for three years).

Lee Sangchang, Director of Korea Technology Finance Corporation (second from the left), and Bae Yeonsu, Head of Corporate Group at Woori Bank (third from the left), along with other participants of the agreement ceremony, are taking a commemorative photo. Photo by Korea Technology Finance Corporation

Additionally, based on Woori Bank's 300 million won guarantee fee support fund, Korea Technology Finance Corporation will supply guarantee support totaling 21.4 billion won, with Woori Bank subsidizing guarantee fees (by 0.7 percentage points for two years).

The support targets acquiring companies pursuing M&A that meet Korea Technology Finance Corporation's technology guarantee requirements, providing guarantees for both operating funds and facility funds. With this agreement, the two institutions aim to enhance financial access for SMEs engaging in M&A, build a foundation for mutual cooperation, and continue supporting the creation of new growth engines and increased competitiveness for businesses.

Lee Sangchang, Director of Korea Technology Finance Corporation, said, "We expect this agreement to invigorate M&A activities among SMEs and serve as a catalyst for their continuous growth. Korea Technology Finance Corporation will continue to expand cooperation with related institutions to strengthen support for companies pursuing M&A and to foster an M&A ecosystem that prevents the extinction of technology-based companies and supports sustainable management."

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