Korea Technology Finance Corporation (KOTEC) said on the 14th that it signed a business agreement with Shinhan Bank for "financial support linked to investment in innovative venture companies" and will strengthen financial support for innovative small and midsize enterprises.
The agreement was prepared to realize productive finance by minimizing funding gaps for promising small and midsize enterprises that have attracted venture investment and by linking private investment with policy finance to vitalize a venture capital ecosystem.
Korea Technology Finance Corporation (KOTEC) will provide up to 20 billion won in special contribution agreement guarantees, funded by Shinhan Bank's special contribution of 1 billion won. KOTEC will offer benefits such as higher guarantee ratios. Eligible recipients are new technology businesses that meet KOTEC's technology guarantee requirements: unlisted small and midsize enterprises within seven years of founding that have attracted at least 500 million won from a venture investment institution, and unlisted small and midsize enterprises with a technology business evaluation grade of BB or higher that have received at least 2 billion won in investment within the past two years.
Through this agreement, the two institutions plan to build a joint support system so that innovative companies can manage funds stably even before securing follow-on investment.
Kim Jong-ho, chair of KOTEC, said, "This agreement is meaningful in that it established a foundation for financial support so innovative companies can overcome the so-called 'death valley' phase and secure the liquidity needed for growth in a timely manner," adding, "KOTEC will continue to expand collaboration with related institutions to help create a financial ecosystem where small and midsize venture companies can grow stably."