KOTEC and Woori Bank Support SMEs in Overcoming Crisis from Middle East War

On April 20, the Korea Technology Credit Guarantee Fund (KOTEC) announced that it had signed a "Financial Inclusion Support Agreement for SMEs to Overcome Crises Caused by the Middle East War and Other Events" with Woori Bank. This agreement is designed to expand financial support for small and medium-sized enterprises (SMEs) experiencing management difficulties due to global instability, such as the Middle East war, and to help them overcome crises by easing their financing burdens.

Under the agreement, KOTEC will supply special guarantee agreements totaling 50 billion won, using 2.5 billion won in special contributions from Woori Bank as funding. Eligible companies can receive up to 3 billion won in working capital support, and will benefit from preferential terms such as an increased guarantee ratio (from 85% to 100% for three years) and a reduction in guarantee fees (up to 0.4 percentage points lower for three years).

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Additionally, KOTEC will provide guarantee agreements supporting guarantee fees totaling 150 billion won, based on 1.5 billion won in guarantee fee support funds from Woori Bank. Woori Bank will support guarantee fees (0.5 percentage points for two years).

Eligible recipients include new technology businesses that meet KOTEC’s technical guarantee requirements, such as: companies directly exporting (or expected to export) to the Middle East; raw material demand companies impacted by supply chain disruptions of Middle Eastern crude oil; companies facing management difficulties due to deteriorating economic conditions caused by the Middle East war; and other companies recommended by the bank.

Through this agreement, the two organizations plan to respond swiftly to rapidly changing Middle East conditions and strengthen the foundation for cooperation to help SMEs temporarily struggling with business operations due to factors such as rising exchange rates and oil prices.

Kim Joungho, Chairman of KOTEC, said, "We expect this agreement to provide substantial support for the management stability of SMEs suffering from the Middle East war. KOTEC will continue to expand cooperation with relevant organizations to actively support SMEs and venture companies so they can continue to grow amid changing external environments."

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