Backed by Shinhan Bank's 4 billion won in contributions and support funds
Korea Technology Finance Corp. (Kibo) will supply 200 billion won ($129 million) in agreement-based guarantees to small and medium-sized enterprises and venture companies hit by the Middle East war.
Kibo announced Friday it had signed a financial support agreement with Shinhan Bank to that effect.
Under the deal, Shinhan Bank will make a special contribution of 2.5 billion won to Kibo, which will use the funds to provide 50 billion won in agreement-based guarantees. The arrangement also includes a raised guarantee ratio — from 85 percent to 100 percent — and a reduction in guarantee fees of up to 0.4 percentage points.
An additional 150 billion won in fee-support agreement guarantees will be supplied based on 1.5 billion won in guarantee fee subsidies from Shinhan Bank. The bank will cover 0.5 percentage points of guarantee fees for two years.
Eligible companies are new-technology businesses that meet Kibo's technology guarantee requirements, including those directly exporting — or expected to export — to the Middle East, raw material users affected by disruptions to Middle Eastern crude oil supply chains, and companies facing broader business difficulties.
"We will continue to expand cooperation with related institutions to deliver effective financial support," Kibo Chairman Kim Jong-ho said.
freiheit@heraldcorp.com
