KODIT Offers 100 Billion Won in Preferential Guarantees for Youth Startups
For startups led by entrepreneurs aged 39 or younger and guarantee amounts up to 300 million won
100% guarantee ratio for three years and full exemption of guarantee fees
The Korea Credit Guarantee Fund (KODIT) has partnered with Hana Bank to provide preferential guarantees totaling 100 billion won to startups led by entrepreneurs aged 39 and under. The guarantee ratio will be raised to 100%, and all guarantee fees will be fully waived, reducing financial burdens for early-stage startups.
On August 21, KODIT announced the signing of a “Y-BRIDGE Guarantee Financial Support Agreement for Supporting Youth Startups” with Hana Bank, as of August 24. This agreement was established to support promising youth-founded startups, enabling them to secure a stable management foundation and strengthen their future competitiveness. With funding sourced from special contributions and fee support provided by Hana Bank, KODIT will supply a total of 100 billion won in guarantee agreements under this initiative.
The support is aimed at promising young startups with representatives aged 39 or younger and guarantee amounts of up to 300 million won. For these eligible companies, the guarantee ratio will be maintained at 100% for three years, with a fixed annual guarantee fee rate of 0.3% applied.
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As Hana Bank is subsidizing 0.3 percentage points of the guarantee fee, companies will be fully exempt from having to pay the guarantee fee. KODIT expects that this measure will significantly reduce the financial burden for early-stage youth startups with limited access to financing. Kang Seungjun, Director of KODIT, stated, “We hope this agreement will act as a bridge, allowing young talents' innovative ideas to lead to successful startups and further scaling up. We will continue to provide policy support to invigorate the youth entrepreneurship ecosystem and enable these ventures to become key drivers of our economy.”
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