The Korea Technology Guarantee Fund announced on June 17 that it has issued 238.9 billion won in Primary Collateralized Bond Obligations (P-CBOs) in the first half of this year.
P-CBOs are asset-backed securities issued by a special purpose company (SPC) that acquires new corporate bonds issued by technology small and medium enterprises (SMEs) with low credit ratings, making it difficult for them to issue corporate bonds. This initiative was introduced to alleviate liquidity shortages for SMEs during credit tightening periods and to facilitate smooth funding. The fund provides guarantees for the debts incurred by the SPC, helping technology SMEs secure stable financing.
Through the issuance of P-CBOs in the first half of the year, the fund supported 129 technology SMEs. Of the total issuance amount, 166 billion won was allocated for new funding, while 72.9 billion won was used for refinancing existing corporate bonds. Notably, 27.5 billion won was issued as Green Asset-Backed Securities (G-ABS) to support 12 companies that align with the Korean Green Taxonomy for economic activities.
The fund plans to issue additional P-CBOs in the second half of the year to further support the funding needs of technology SMEs and green companies.
Kim Jong-ho, the chairman of the Korea Technology Guarantee Fund, stated, "We are strengthening tailored policy support to realize the third venture boom and build a growth ladder for small and medium-sized enterprises. We will expand innovative financial support to ensure that SMEs can secure global technological competitiveness and continue their growth."
* This article has been translated by AI.
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