The Credit Guarantee Fund announced on August 21 that it has signed a financial support agreement with IBK Industrial Bank to promote promising youth startups.
The agreement aims to invigorate the youth startup ecosystem and reduce the financial burden on early-stage companies. The two institutions will introduce preferential financial products specifically for promising youth startups.
The Credit Guarantee Fund will provide a total of 200 billion won in guaranteed loans to promising youth startups led by individuals aged 39 and under. These companies will benefit from a guarantee rate of up to 100% for five years, with a reduction of up to 0.7 percentage points in guarantee fees.
For companies with a total guarantee amount, including existing balances, of 300 million won or less, a fixed guarantee fee rate of 0.3% per year will apply, regardless of credit rating. IBK Bank will also offer interest rate discounts of up to 1.5 percentage points to companies utilizing the guaranteed loans.
A representative from the Credit Guarantee Fund stated, “We will support promising youth startups to operate their businesses more stably and continue to provide policy support so that young entrepreneurs can grow as key players in innovative growth.”
* This article has been translated by AI.
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