Kibo Joins Hands with Busan City and Busan Bank to Promote SME M&A

Signing of Business Agreement to Promote M&A Activities

Korea Technology Finance Corporation (Kibo) announced on the 18th that it has signed a "Business Agreement to Support the Promotion of M&A for the Sustainable Management of SMEs in Busan" together with Busan Metropolitan City, BNK Busan Bank, Busan Chamber of Commerce & Industry, and Busan Regional Office of SMEs and Startups.

Exterior view of the Busan Namgu Technology Credit Guarantee Fund. Kibo

This agreement was established in response to delayed generational transition among local SMEs, as the average age of CEOs of major manufacturing companies in the Busan area is higher than the national average. Its aim is to prevent a decline in corporate competitiveness and support sustainable management through the promotion of mergers and acquisitions (M&A).

The Busan Chamber of Commerce & Industry and the Busan Regional Office of SMEs and Startups will be responsible for identifying local companies seeking M&A and promoting related programs. Busan Bank will provide financial support through special contributions. Kibo will offer guaranteed support to companies identified by the partner organizations based on these special contributions from Busan Bank, while Busan Metropolitan City will provide interest subsidies to companies receiving guarantees.

The support targets companies pursuing M&A that meet Kibo’s technology guarantee requirements and have their headquarters or main business operations located in Busan.

Kim Joungho, Chairman of Kibo, stated, "Ensuring the sustainable management of local SMEs is a critical task directly linked to revitalizing the regional economy. Kibo will continue to expand collaboration with related organizations to strengthen support for SMEs pursuing M&A, and will actively contribute to revitalizing the local economy by promoting a virtuous cycle of capital through these efforts."

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