Korea Technology Finance Corporation (KOTEC) said on the 29th that it signed a financial support agreement with KB Kookmin Bank and Hana Bank for "nurturing social ventures and promoting the growth of the social and solidarity economy."
The agreement was pursued to resolve financial difficulties and support the stable growth of social venture corporations through collaboration between a policy finance institution and private financial institutions.
Eligible recipients are corporations that KIBO has determined to be social venture corporations.
KIBO will provide agreement guarantees for guarantee-fee support totaling 23 billion won, based on guarantee-fee support funds of 400 million won from KB Kookmin Bank and 100 million won from Hana Bank. The partner banks will support guarantee fees by 0.8 percentage point(s) for up to three years.
In addition, KIBO plans to link the agreement guarantees with the Social Venture Impact Guarantee to effectively reduce the burden of guarantee fees.
KIM Jong-ho, KIBO chairman, said, "KIBO will continue, as the dedicated support institution for social venture corporations, to back the stable growth of social ventures and take the lead in realizing social value."