Korea Technology Finance Corporation and Shinhan Bank to Provide KRW 200 Billion Support to SMEs Affected by the Middle East War

Special Contribution Guarantee Program Worth 50 Billion Won

Guarantee Fee Support Program Totals 150 Billion Won

Korea Technology Finance Corporation announced on June 26 that it has signed a "Financial Business Agreement for Inclusive Financial Support to Help SMEs Overcome the Crisis Caused by the Middle East War and Other Factors" with Shinhan Bank.

Exterior view of the headquarters of the Korea Technology Finance Corporation in Nam-gu, Busan. Kibo

This agreement was established to support small and medium-sized venture companies facing management difficulties due to the ongoing high oil prices and high exchange rates following the Middle East war, and to help stabilize their management.

Under the agreement, Korea Technology Finance Corporation will provide a special guarantee program totaling 50 billion won, funded by Shinhan Bank’s special contribution of 2.5 billion won. The corporation will offer benefits such as: ▲ raising the guarantee coverage ratio (from 85% to 100% for three years), and ▲ reducing the guarantee fee (by up to 0.4 percentage points for three years).

Additionally, Korea Technology Finance Corporation will supply a guarantee fee support program totaling 150 billion won, based on Shinhan Bank’s 1.5 billion won guarantee fee support fund. Shinhan Bank will cover the guarantee fee (0.5 percentage points for two years).

The support targets are new technology businesses that meet the guarantee requirements of Korea Technology Finance Corporation, including: ▲ companies that directly export (or plan to export) to the Middle East, ▲ companies that have suffered from disruptions in the supply of Middle Eastern crude oil, ▲ companies experiencing management difficulties due to worsening economic conditions caused by the Middle East war, and ▲ other companies recommended by the bank.

Both organizations plan to use this agreement as an opportunity to strengthen their cooperation in financial support for companies affected by the Middle East war, and to actively back smooth financing and management stability for these companies.

Kim Joungho, Chairman of Korea Technology Finance Corporation, stated, "Although some uncertainties surrounding the recent Middle East war are easing, small and medium-sized venture companies are still facing significant management challenges. We will continue to expand collaboration with relevant organizations to provide effective financial support and do our utmost to ensure that small and medium-sized venture companies can achieve stable growth."

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