Korea Technology Finance Corporation (KOTEC) said it signed a "M&A financing support business agreement for promoting corporate succession and technological innovation" with Woori Bank at Woori Bank's headquarters on the 21st.
The agreement was pursued to align with the government's merger and acquisition (M&A) promotion policy, support smooth corporate succession and technological innovation for small and medium-sized corporations, prevent corporate extinction, and lay the groundwork for sustainable growth.
Under the agreement, Korea Technology Finance Corporation (KOTEC) will provide 20 billion won in special-contribution agreement guarantees funded by a 1 billion won special contribution from Woori Bank. KOTEC will offer benefits including ▲ raising the guarantee ratio (85%→100%) ▲ cutting guarantee fees (down by 0.3 percentage point).
In addition, KOTEC will provide 21.4 billion won in guarantee-fee support agreement guarantees based on Woori Bank's 300 million won guarantee-fee support fund, and Woori Bank will support the guarantee fee (0.7 percentage point).
Eligible recipients are acquiring corporations pursuing M&A among corporations that meet KOTEC's technology guarantee requirements, and guarantees will be provided for working capital and facility funds.
Using this agreement as a stepping-stone, the two institutions plan to improve financial access for small and medium-sized corporations pursuing M&A and, by building a foundation for mutual cooperation, continue support to create new growth engines for corporations and strengthen competitiveness.
Lee Sang-chang, a director at KOTEC, said, "We expect this agreement to spur the revitalization of M&A among small and medium-sized corporations and serve as a priming water for sustained growth," adding, "KOTEC will continue to expand cooperation with related institutions to bolster support for corporations pursuing M&A, and will work harder to prevent the extinction of technology corporations and to build an M&A ecosystem for sustainable management."