Small and Medium Business Corporation Provides up to 2 Billion Won to Promising SMEs through Growth Sharing Loan

The Ministry of SMEs and Startups and the Small and Medium Business Corporation are supporting the financing of promising companies through the "Growth Sharing Loan," which provides up to 2 billion won to small and medium-sized enterprises with high growth potential.

Image of Growth Sharing Loan from the Small and Medium Business Corporation. Small and Medium Business Corporation (SBC)

On August 10, the Small and Medium Business Corporation announced that the Growth Sharing Loan would support the commercialization and market entry of SMEs with outstanding growth value and a high likelihood of initial public offering (IPO).

The Growth Sharing Loan is a policy fund whereby the Small and Medium Business Corporation acquires convertible bonds (CB), redeemable convertible preferred shares (RCPS), or convertible preferred shares (CPS) issued by SMEs. Each company may receive up to 2 billion won in support.

In particular, the program focuses on supplying funds to companies that have difficulty raising sufficient capital in the private financial market, such as those located outside the Seoul metropolitan area and startups.

FR Tech, a manufacturer of construction materials, is a representative beneficiary of the program. Established in February last year, FR Tech secured the funds needed for commercialization through the Growth Sharing Loan as new market entry support. Based on this, the company commercialized glass fiber-reinforced plastic (GFRP) reinforcement—an eco-friendly advanced material that can replace traditional steel rebar—and achieved sales of 1.3 billion won in its early startup phase. The company also plans to establish overseas subsidiaries to enter the global market.

Youjin Kim, CEO of FR Tech, said, "Financial support was essential at the early stage of the company to demonstrate the excellence of our advanced material products and to secure business partners," adding, "The Growth Sharing Loan was a great help as it enabled us to receive funding based on our future growth potential."

Ilho Kim, Head of Corporate Finance at the Small and Medium Business Corporation, stated, "The Growth Sharing Loan is policy-based financing that focuses on future growth potential rather than the current financial status of a company," and added, "We will continue to discover SMEs with high growth potential and provide timely funding needed for their commercialization and market entry."

The Growth Sharing Loan is available year-round, and detailed information on support and the application process can be found on the Small and Medium Business Corporation's website.

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