Korea Technology Finance Corporation and Gwangju Rehabilitation Court Join Forces to Support Business Recovery and Activate Technology Transactions

Establishing a Cooperative System for Supporting the Recovery of Rehabilitated Companies and Utilizing Bankrupt Companies' Intellectual Property

On July 14, Korea Technology Finance Corporation announced that it had signed a "Business Agreement for Supporting the Successful Recovery of Rehabilitated Companies" and a "Business Agreement for Promoting the Utilization of Intellectual Property Owned by Bankrupt Companies and Activating Technology Transactions for SMEs" with Gwangju Rehabilitation Court.

This agreement aims to help rehabilitated companies recover quickly and to broaden opportunities for utilizing the advanced technologies held by bankrupt companies, thereby strengthening the foundation for the sustainable growth of technology-based SMEs. Following its agreement with Daegu Rehabilitation Court in June, Korea Technology Finance Corporation has now expanded its cooperation to Gwangju Rehabilitation Court, promoting support for business recovery and the activation of technology transactions in connection with rehabilitation and bankruptcy procedures.

Executive Director Juseon Park of the Korea Technology Finance Corporation (right) and Chief Judge Sungjoo Kim of Gwangju Rehabilitation Court are taking a commemorative photo after signing the business agreement. Photo by Korea Technology Finance Corporation

Under the agreement, Gwangju Rehabilitation Court will recommend companies undergoing rehabilitation procedures with high potential for business normalization to Korea Technology Finance Corporation. Korea Technology Finance Corporation will then conduct reviews of the recommended companies and provide customized financial support, such as the "Rechallenge Recovery Guarantee." The Rechallenge Recovery Guarantee is a special guarantee program designed to help entrepreneurs with strong technological capabilities make a new start after business failure. Companies undergoing rehabilitation procedures can receive the necessary funding for business operations after passing technology assessments and reviews, provided they meet certain requirements, such as the early termination of rehabilitation proceedings or fulfilling at least one installment payment under the rehabilitation plan. Supported companies will benefit from an increased guarantee ratio (from 85% up to 100%) and a fixed guarantee fee rate (as low as 0.8%).

Additionally, under the technology transaction activation agreement, Gwangju Rehabilitation Court will share information on intellectual property, such as patents held by bankrupt companies, with Korea Technology Finance Corporation. In turn, Korea Technology Finance Corporation will use its technology transaction platform "Smart Tech Bridge" to support technology transactions, including identifying demand companies, technology brokerage, and matching.

The two organizations plan to use this agreement as an opportunity to establish a close cooperative system and to continue working together to provide financial support for rehabilitated companies and to promote the utilization of intellectual property held by bankrupt companies. Jusun Park, Executive Director of Korea Technology Finance Corporation, said, "This agreement is significant in that it expands the basis for cooperation to help normalize the management of rehabilitated companies and to transfer and utilize advanced technologies held by bankrupt companies to companies in need. Korea Technology Finance Corporation will continue to work with rehabilitation courts to support business recovery, activate technology transactions, and strive for the sustainable growth of technology-based SMEs."

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