The Korea Federation of Small and Medium Enterprises said it will sign a business agreement on the 27th with Samsung Electronics, Woori Bank, and Korea Technology Finance Corporation (KOTEC) to strengthen financial support for small and medium-sized companies building smart factories.
The agreement targets small and mid-sized manufacturing companies that took part in the "large-small win-win smart factory construction project" jointly carried out by KBIZ and Samsung Electronics. The participating institutions plan to enhance the competitiveness of small and mid-sized businesses and promote co-prosperity between large and small companies through financial support such as cuts in technology guarantee fees and preferential loan interest rates.
Woori Bank will provide Korea Technology Finance Corporation (KOTEC) guarantee fees and loans through a special contribution to Korea Technology Finance Corporation (KOTEC), and will also offer market access support benefits such as purchasing products from the supported small and mid-sized companies. Korea Technology Finance Corporation (KOTEC) will strengthen the collateral capacity of smart factory builders by issuing technology guarantee certificates.
KBIZ and Samsung Electronics will continue to provide mentoring for on-site manufacturing innovation activities and step-by-step support for smart factory construction through the operation of the large-small win-win smart factory construction project. They will also cooperate in promoting the financial support under this agreement and in the process of identifying eligible companies.
Under this agreement, small and mid-sized companies participating in the "large-small win-win (Samsung) smart factory construction project" will receive up to a 1.3 percentage point reduction in the Korea Technology Finance Corporation (KOTEC) guarantee fee rate when taking out working capital or facility loans.
Yang Chan-hoe, head of the innovation growth division at KBIZ, said, "This agreement is a new win-win finance model of a 'sustainable co-prosperity ecosystem' created jointly by large corporations, small and mid-sized companies, and financial institutions," adding, "Beyond simple funding, it is significant that four corporations and institutions joined hands to strengthen the competitiveness of small manufacturing and provide financial support that small and mid-sized companies can tangibly feel."