Kibo and Woori Bank Join Hands to Foster New Growth Industries

by Kim Chulhyun

Published 27 Apr.2023 09:43(KST)

Preferential Guarantee Support Worth 232 Billion KRW for Vulnerable SMEs and Others

The Korea Technology Finance Corporation (Chairman Kim Jong-ho, hereinafter Kibo) announced on the 27th that it has signed a "Financial Support Agreement for Overcoming the Complex Economic Crisis and Fostering New Growth Industries" with Woori Bank (President Lee Won-duk) and will provide preferential guarantees totaling 232 billion KRW.

This agreement was established to expand financial support for vulnerable small and medium-sized enterprises (SMEs) facing management difficulties due to the recent complex economic crisis and technology SMEs in new growth industry sectors. Under the agreement, Kibo will preferentially support special contribution agreement guarantees worth 120 billion KRW, funded by a special contribution of 6 billion KRW. Benefits such as an increase in the guarantee ratio (from 85% to 100%) and a reduction in guarantee fees (0.2 percentage points decrease for 3 years) will be provided to reduce financial costs for target companies and promote innovative growth.

Kibo and Woori Bank Join Hands to Foster New Growth Industries

Additionally, using 1.12 billion KRW from guarantee fee support funds, guarantees worth 112 billion KRW will be supported under the guarantee fee support agreement. Woori Bank plans to supply a total of 232 billion KRW in agreement guarantees through special contributions and guarantee fee support, including a 0.5 percentage point guarantee fee support for 2 years.

The target companies for support include technology SMEs in the following areas: vulnerable SMEs engaged in innovation-leading industries; new growth industries such as ultra-gap future strategic industries; startup ecosystem creation sectors including technology startups; SME competitiveness enhancement sectors such as export SMEs; and sustainable growth (ESG) sectors such as climate and environmental industries.

Kim Jong-ho, Chairman of Kibo, stated, "To overcome the complex economic crisis, creating new growth engines centered on technology SMEs is essential," adding, "We will expand policy finance for technology-innovative SMEs through this agreement to support South Korea’s economic leap forward."