The government announced on the 31st that it will introduce a 'special guarantee for innovative corporations' starting in September to address the initial funding challenges faced by innovative companies.
This is the result of the Ministry of Economy and Finance reviewing measures to alleviate funding difficulties for early-stage corporations in cooperation with the Public Procurement Service, Korea Technology Finance Corporation (KOTEC), and Korea Credit Guarantee Fund (KODIT).
The special guarantees will include ▲ a maximum limit of 300 million won in guarantee support separate from existing guarantees, ▲ an expansion of the revenue recognition ratio in procurement contracts to a maximum of 50%, ▲ an increase in the guarantee ratio from 85% to 90%, and ▲ a reduction of the guarantee fee by 0.2 percentage points. Especially, corporations established within one year of their founding can apply for a 100% guarantee ratio.
The government signed a memorandum of understanding (MOU) on the 29th in cooperation with the Public Procurement Service, Korea Technology Finance Corporation (KOTEC), and Korea Credit Guarantee Fund (KODIT) to ensure that the system stabilizes and has also included related project costs in next year's budget.
A government official said, 'The Ministry of Economy and Finance and the Public Procurement Service will continue to respond promptly to the voices from the field and concentrate our efforts to ensure that innovative corporations can settle in the procurement market.'