The Korea Technology Guarantee Fund (TGIF) has initiated financial support for small and medium-sized enterprises (SMEs) in future strategic industries and those facing policy financing gaps.
On June 4, TGIF announced that it has signed two memorandums of understanding (MOUs) with the Industrial Bank of Korea (IBK): one for productive financial support for future strategic industries and another for financial support for companies in policy gaps.
These agreements aim to facilitate funding for SMEs in future strategic industries, enhancing their financial accessibility and supporting their growth and advancement.
Under the productive financial support agreement, TGIF will provide a total of 492.5 billion won in guarantee agreements, based on a special contribution of 9 billion won from IBK and a guarantee fee support of 5 billion won.
Eligible companies include new technology businesses that meet TGIF's technology guarantee criteria and operate in six advanced strategic industries: artificial intelligence (AI), biotechnology, cultural content, defense, energy, and advanced manufacturing.
Additionally, under the policy gap financial support agreement, TGIF will supply a total of 250 billion won in guarantee agreements, based on a special contribution of 5 billion won from IBK and a guarantee fee support of 2.55 billion won.
Eligible companies for this support include new technology businesses in the materials, parts, and equipment sectors, root industries, small enterprises, startup graduates (those in business for more than 7 years but less than 12), companies undergoing restructuring or transitioning to new industries, and other firms recommended by IBK.
Both agreements will provide benefits such as an increase in the guarantee ratio (from 85% to 100% for three years) and a reduction in guarantee fees (by 0.2% to 0.3% for three years). IBK will also offer guarantee fee support (from 0.5% to 1.5% for two years).
Previously, TGIF signed an MOU with the National Federation of Fisheries Cooperatives to provide a total of 84 billion won in guarantee agreements to support SMEs in future strategic industries.
Kim Jong-ho, the chairman of TGIF, stated, "This agreement strengthens the growth foundation for SMEs that will lead future industries and represents meaningful cooperation to address the gaps in policy financing. TGIF will continue to expand collaboration with financial institutions to enhance productive and inclusive finance, actively supporting the leap of innovative companies."
* This article has been translated by AI.
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