Korea Technology Finance Corporation (KOTEC) said on the 20th that it signed a "cooperative agreement on inclusive financial support to help small and midsize enterprises overcome crises caused by the Middle East war, among others" with Woori Bank.
The agreement was prepared to expand financial support for small and midsize enterprises facing management difficulties due to global instability such as the Middle East war, and to ease funding burdens to help small and venture corporations overcome the crisis.
Under the agreement, Korea Technology Finance Corporation (KOTEC) will provide 50 billion won in special contribution agreement guarantees using Woori Bank's 2.5 billion won in special contributions as the source of funds. Eligible corporations can receive up to 3 billion won in working capital support and will also be offered preferential benefits such as ▲ higher guarantee coverage (85%→100%) ▲ reduced guarantee fees (up to 0.4 percentage point↓).
In addition, Korea Technology Finance Corporation (KOTEC) will provide 150 billion won in guarantee fee support agreement guarantees based on Woori Bank's 1.5 billion won in guarantee fee support funds, and Woori Bank will cover the guarantee fee (0.5 percentage point).
Those eligible are new technology businesses that meet Korea Technology Finance Corporation (KOTEC)'s technology guarantee requirements, including ▲ corporations that export directly to the Middle East (or are expected to) ▲ corporations that procure raw materials and suffered losses due to disruptions in the supply of Middle Eastern crude oil ▲ corporations experiencing management difficulties due to worsening economic conditions caused by the Middle East war ▲ other corporations recommended by the bank.
Through this agreement, the two institutions plan to respond swiftly to rapidly changing conditions in the Middle East and strengthen a cooperative foundation to resolve temporary management difficulties of small and midsize enterprises affected by factors such as the rise in exchange rates and oil prices.
Kim Jong-ho, chair of Korea Technology Finance Corporation (KOTEC), said, "This agreement is expected to provide practical help in stabilizing the management of small and midsize enterprises struggling due to the Middle East war," and added, "Korea Technology Finance Corporation (KOTEC) will continue to expand cooperation with related institutions to actively support small and venture corporations so they can continue to grow amid changes in the external environment."