BNK Kyongnam Bank Signs Financial Support Agreement to Promote SME M&A

Productive Financial Support and Securing New Growth Engines
with a 20 Billion Won Special Agreement Guarantee
in Partnership with Korea Technology Finance Corporation

BNK Kyongnam Bank announced on May 4 that it has signed a Financial Business Agreement with Korea Technology Finance Corporation (KOTEC) to promote financial support for small and medium-sized enterprise (SME) M&A (mergers and acquisitions) activities.

This agreement was established to create a stable funding environment that enables SMEs to expand their future growth base and scale up through M&A (mergers and acquisitions).

BNK Kyongnam Bank Headquarters. [Photo by Kyongnam Bank]

BNK Kyongnam Bank has contributed a special fund of 1 billion won, and Korea Technology Finance Corporation will use this fund as the financial source to provide a total of 20 billion won in special guarantee support through this agreement.

Additionally, BNK Kyongnam Bank will actively support loans, while Korea Technology Finance Corporation will provide benefits over the next three years, including raising the guarantee ratio from 85% to 100% and reducing the guarantee fee by 0.3 percentage points.

The support targets are acquiring companies pursuing M&A that meet the technological guarantee requirements of Korea Technology Finance Corporation. Both working capital and facility loan guarantees will be offered.

With this agreement, the two institutions plan to enhance financial accessibility for SMEs pursuing M&A, establish a collaborative foundation, and promote SME M&A to support business expansion and strengthen competitiveness of technology companies in response to industrial transformation and intensifying technological competition.

Kim Kibum, Executive Director of the Corporate Customer Group, stated, "We have partnered with Korea Technology Finance Corporation to support the continuous growth and strengthen the industrial competitiveness of local SMEs. We will spare no effort to provide financial support so that SMEs preparing for a new leap through M&A can secure funds stably and successfully establish themselves."

Kim Joungho, Chairman of Korea Technology Finance Corporation, said, "This agreement is meaningful in that it provides a foundation for financial support, enabling SMEs to seek new growth opportunities through M&A amid internal and external environmental changes. Going forward, Korea Technology Finance Corporation will continue to strengthen cooperation with related organizations, enhance financial support for companies pursuing M&A, and further revitalize the M&A ecosystem to facilitate scale-up and sustainable management for technology companies."

Meanwhile, last month BNK Kyongnam Bank also signed a Financial Business Agreement with Korea Technology Finance Corporation to provide productive financial support for the development of local ventures and startups. The bank is actively supporting increased financial accessibility for promising local startups and strengthening the innovation startup ecosystem.

This content was produced with the assistance of AI translation services.