The Korea Technology Guarantee Fund (KOTEC) is launching financial support initiatives to assist outstanding small and medium enterprises (SMEs) in their research and development (R&D) efforts.
KOTEC announced on July 10 that it has signed a financial support agreement with the Industrial Bank of Korea and Hana Bank to promote the commercialization of industrial technology R&D projects.
This agreement follows a previous partnership established in May with the Ministry of Trade, Industry and Energy, aimed at providing expedited preferential financial support to enhance the commercialization and market entry of excellent R&D outcomes and to strengthen the growth foundation of technology innovation companies.
Under the agreement, KOTEC will provide a total of 405 billion won in guarantee support, funded by special contributions of 17 billion won from the Industrial Bank of Korea and 10 billion won from Hana Bank. KOTEC will offer benefits such as an increased guarantee ratio (from 85% to 100% for three years) and a reduction in guarantee fees (up to 0.5 percentage points for three years), while the banks will provide preferential interest rates.
The support is targeted at new technology businesses that meet KOTEC's guarantee requirements and have completed R&D projects recommended by the Korea Evaluation Institute of Industrial Technology (KEIT) or the Korea Institute for Advancement of Technology (KIAT), as well as companies recommended by the Ministry of Trade, Industry and Energy. Eligible companies can receive up to 5 billion won in working capital.
Through this agreement, the institutions aim to expand financial support for the commercialization of outstanding industrial technology R&D outcomes and to strengthen their collaborative framework to ensure that technological innovations are swiftly translated into commercial success.
Kim Jong-ho, Chairman of KOTEC, stated, "This agreement is significant as it establishes a preferential financial support system necessary for the commercialization of industrial technology R&D outcomes through collaboration between policy finance and private finance. KOTEC will continue to expand cooperation with relevant institutions to enhance the value of excellent R&D outcomes and support the innovative growth of technology companies."
* This article has been translated by AI.
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