Hana Bank, KODIT and KOTEC join 200 billion won finance support deal
Lawmaker meets young entrepreneurs to hear funding difficulties
Jeon vows to broaden financial sector participation for youth
Democratic Party of Korea lawmaker Jeon Hyun-hee met with young entrepreneurs Tuesday to hear about the challenges they face in accessing financial services, following the launch of a 200 billion won ($146 million) youth startup finance support program.
Jeon, a member of the National Assembly's Political Affairs Committee, hosted the forum — titled "Building a Financial Ladder for Youth Dreams: A Discussion on Financial Support Measures with Young People" — at the National Assembly Members' Office Building on Tuesday.
The forum was organized to introduce the 200 billion won youth startup finance support program that Jeon developed together with Hana Bank, the Korea Credit Guarantee Fund and the Korea Technology Finance Corporation, and to gather feedback from young people interested in using the products.
Hana Bank, the Korea Credit Guarantee Fund and the Korea Technology Finance Corporation signed the 200 billion won youth startup finance support agreement on Aug. 21. Just four days after the signing, a financial product offering loans of up to 300 million won at interest rates in the 3 percent range was launched. Jeon had been in ongoing discussions with financial regulators and the banking sector to lower the barriers facing young entrepreneurs struggling to secure early-stage startup funding.
Attendees included Democratic Party National University Students Committee Chairman Bong Geon-woo, Democratic Party Seoul chapter University Students Committee Chairman Lee Dong-won, and young entrepreneurs including Choi Seong-min, chief executive of Neurujip. Representatives from Hana Bank, the Korea Credit Guarantee Fund and the Korea Technology Finance Corporation also attended, explaining loan limits, interest rates, guarantee requirements and application procedures.
The young entrepreneurs asked questions about loan terms and the screening process based on their own business circumstances, and shared the funding difficulties and limited access to financial support information that early-stage startups encounter when dealing with financial institutions.
"Youth startup financial support does not end with creating a product — it only has meaning when the young people who actually need the funds can learn about it easily and use it without difficulty," Jeon said. "I will continue to refine this financial support program based on the on-the-ground difficulties that young entrepreneurs shared with us today, so that it can provide real, practical help."
"Young people with good ideas, technology and the will to take on challenges should never have to give up their dreams because of money," she added. "Starting with this 200 billion won youth startup financial ladder, I will work to broaden the financial sector's participation and build an even wider and stronger financial ladder for young people."
Jeon held a policy forum with the financial workers' union in July on expanding youth employment and startup support, then signed a "Youth Employment Expansion and Youth Startup Support Policy Agreement" on Aug. 12. Later that month, on Aug. 21, she secured a special contribution agreement from Hana Bank, the Korea Credit Guarantee Fund and the Korea Technology Finance Corporation.
In the National Assembly's Political Affairs Committee, Jeon has also been pressing financial regulators to expand youth startup financial support using private banks' corporate social responsibility funds, and to broaden the public-private cooperation model.
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