The Korea Technology Finance Corporation (KOTEC) announced on the 25th that it has signed a business agreement for financial support with the Industrial Bank of Korea to provide special support for working capital for equipment investment startup companies.
The two institutions plan to provide a maximum of 100 billion won in guaranteed agreements to support startups that have completed equipment investments in securing a stable future growth foundation.
KOTEC will preferentially support a special agreement guarantee worth 50 billion won with the special contribution of 2.5 billion won from the Industrial Bank of Korea. KOTEC has increased the guarantee rate from 85% to 90% for three years, and will also reduce the guarantee fee by 0.2 percentage points.
Based on the guarantee fee support of 750 million won from the Industrial Bank of Korea, a guarantee agreement worth 50 billion won will be provided, and the Industrial Bank of Korea will also support the guarantee fee (0.5 percentage points for three years).
The target for support is startups that meet KOTEC's technology guarantee requirements among new technology businesses that have received facility investment funds through the Industrial Bank of Korea's "special support program for startup equipment investment."
KOTEC Chairman Kim Jong-ho said, "We will continue to strengthen collaboration with financial institutions so that startups can achieve sustainable growth and will do our best to activate the startup ecosystem to build a foundation for future growth."