The Korea Technology Guarantee Fund has signed a business agreement with the Seoul Bankruptcy Court to support the successful revival of bankrupt companies.
According to the Technology Guarantee Fund on May 18, the agreement aims to identify companies with a high potential for management normalization and link them with financial support, enabling these companies to establish a stable recovery foundation and quickly normalize their operations.
Under the agreement, the Seoul Bankruptcy Court will recommend companies undergoing bankruptcy proceedings that have a high likelihood of revival to the Technology Guarantee Fund. In turn, the Fund will assess these recommended companies and provide financial support, including the 'Revival Support Guarantee.' Both institutions will also collaborate on providing guidance and promoting systems for bankrupt companies to facilitate smooth recoveries.
The Revival Support Guarantee program, operated by the Technology Guarantee Fund, helps outstanding small and medium-sized enterprises in financial distress by repaying their debts and assisting in their recovery. It can reduce existing debts by up to 90% and also guarantees new funding. This program is based on technology assessments, making it relatively likely to succeed.
Building on the operational success of this agreement, the Technology Guarantee Fund plans to expand its cooperation to five bankruptcy courts nationwide to broaden the support framework for the revival of bankrupt companies.
Kim Jong-ho, Chairman of the Technology Guarantee Fund, stated, "This agreement is significant as it establishes a cooperative system between the courts and policy financing institutions in response to the increasing number of bankruptcy applications from small and medium-sized enterprises due to rising external uncertainties and economic slowdown. The Technology Guarantee Fund will continue to expand its collaboration with bankruptcy courts to support the successful revival of these companies and serve as a strong pillar for crisis-stricken businesses to make a comeback."
* This article has been translated by AI.
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