Nonghyup Bank and Korea Technology Finance Corporation Join Forces to Foster Advanced Industries and Help SMEs Overcome Crisis with 317 Billion Won Support

177 Billion Won in Agreement Guarantees for AtoF Industry-Related Companies

140 Billion Won in Agreement Guarantees for Middle East-Affected New Technology Businesses

NH Nonghyup Bank announced on the 12th that it has signed two agreements with the Korea Technology Finance Corporation: the "AtoF Productive Financial Support Agreement for the Fostering of Future Strategic Industries" and the "Inclusive Financial Support Agreement to Overcome the Crisis of SMEs Caused by the Middle East War and Other Factors."

These agreements were established to support the growth of advanced technology-based future strategic industries and to help stabilize the management of small and medium-sized enterprises (SMEs) facing difficulties due to global uncertainties such as the Middle East war. Nonghyup Bank will make a special contribution of 8 billion won to the Korea Technology Finance Corporation and, based on this, will provide financial support totaling 317 billion won.

To foster future strategic industries, Nonghyup Bank will contribute 3.5 billion won in special contributions and 1.5 billion won in guarantee fee support, supplying a total of 177 billion won in agreement guarantees. The Korea Technology Finance Corporation will offer benefits such as an increase in the guarantee ratio (from 85% to 100% for three years), a reduction in guarantee fees (by 0.2 percentage points for three years), and guarantee fee support (by 0.7 percentage points for two years).

The eligible recipients are new technology-based businesses that meet the guarantee requirements of the Korea Technology Finance Corporation and are engaged in one of the six major advanced strategic industries: artificial intelligence (AI), bio, contents & culture, defense, energy, and advanced manufacturing (factory).

To help companies affected by the Middle East war overcome their crises, Nonghyup Bank will supply 140 billion won in agreement guarantees, based on its own special contribution of 2 billion won and guarantee fee support of 1 billion won. The Korea Technology Finance Corporation will provide benefits such as an increase in the guarantee ratio (to 100% for three years), a reduction in guarantee fees (by up to 0.4 percentage points for three years), and guarantee fee support (by 0.5 percentage points for two years).

Eligible recipients include new technology-based businesses that meet the guarantee requirements of the Korea Technology Finance Corporation, such as companies that export directly (or are expected to export) to the Middle East, companies that have suffered due to disruptions in Middle Eastern crude oil supply chains, companies facing management difficulties due to worsening economic conditions caused by the Middle East war, and companies recommended by the bank.

Eom Eulyong, Vice President of Corporate Banking at Nonghyup Bank, said, "This agreement was established to strengthen support for the fostering of future strategic industries and for SMEs suffering from external uncertainties such as the Middle East war," adding, "We will continue to do our best to expand productive and inclusive finance to help stabilize the real economy."

Eom Eulyong, Vice President of the National Agricultural Cooperative Federation Bank (second from the left), Lee Jaepil, Standing Director of the Korea Technology Finance Corporation (third from the left), and officials from both institutions are posing for a photo on the 11th after signing a business agreement to foster future strategic industries and support inclusive finance.

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