Government to Provide KRW 700 Billion for R&D Commercialization... Preferential Finance Program Launched

KRW 405 Billion by Kibo, KRW 300 Billion by Ksure in Guarantees…

Up to KRW 10 Billion Support per Company

Special Limits up to 2.5 Times Higher for Non-Metropolitan and M.AX Alliance Firms

Yonhap News

The government will provide KRW 700 billion in policy finance to support the commercialization of industrial technology research and development (R&D) achievements and overseas expansion. To assist companies that have successfully completed R&D but face difficulties in securing funding required for validation or mass production, the government will offer support through a combination of guarantees and low-interest loans.

On August 31, the Ministry of Trade, Industry and Energy (MOTIE) announced the official launch of the “Industrial R&D Innovative Enterprise Preferential Package Financial Program,” totaling KRW 705 billion.

The eligible companies are those that, within the past five years, have carried out R&D projects under MOTIE with an “excellent” or “completed” rating and have been recommended by R&D specialized institutions, such as the Korea Evaluation Institute of Industrial Technology (KEIT) and the Korea Institute for Advancement of Technology (KIAT). The program will help these firms secure capital for follow-up validation, mass production, and import/export operations at low interest rates.

The funds were jointly prepared by Hana Bank and IBK Industrial Bank of Korea, the two dedicated banks for industrial technology R&D. IBK Industrial Bank of Korea contributed KRW 27 billion, and Hana Bank contributed KRW 20 billion, totaling KRW 47 billion in special contributions. Based on these contributions, Korea Technology Finance Corporation and Korea Trade Insurance Corporation will each provide tailored guarantee products specialized in commercialization and import/export, respectively.

The Korea Technology Finance Corporation plans to supply a total of KRW 405 billion in “project commercialization guarantees” over the next three years. While existing technology guarantees evaluate a company’s technological prowess and creditworthiness, this new product will evaluate the commercial viability and growth potential of individual R&D project achievements, providing guarantees for loans necessary for subsequent commercialization.

Depending on the technical evaluation result of the R&D project achievement, companies may receive up to KRW 5 billion in operating funds. Including facility funds, the maximum support limit can increase to KRW 10 billion. The guarantee coverage ratio is 100%, and guarantee fees will be cut by up to 0.5 percentage points.

The Korea Trade Insurance Corporation will provide a total of KRW 300 billion in “R&D Innovative Enterprise Import/Export Guarantees.” Companies which have completed MOTIE R&D projects may receive guarantees for loans—up to KRW 10 billion per company—for operating, manufacturing, and raw material import funds necessary to prepare for export.

The guarantee coverage ratio is 100%, and guarantee fees will be discounted by 20%. Special limits—up to 2.5 times the standard limit—will be applied to companies headquartered outside the Seoul metropolitan area and those participating in the M.AX Alliance.

MOTIE explained that, through this program, government support for R&D will not end with technology development, but will be extended to actual commercialization, sales, and exports. The focus, particularly, is on alleviating funding burdens during the post-R&D validation and mass production stages by connecting policy guarantee institutions with commercial banks.

Lee Minwoo, Director General for Industrial Growth Policy Bureau at MOTIE, stated, “With the official launch of the KRW 705 billion large-scale financial support program, created through close collaboration among commercial banks, policy guarantee institutions, and R&D specialized organizations, we expect to enhance the commercialization outcomes of industrial technology R&D. We will continue detailed support in cooperation with relevant institutions to ensure R&D achievements are strongly linked to increasing company sales, exports, and job creation, instead of remaining at the technology level alone.”

Companies wishing to receive support may apply for guaranteed loans through the R&D Technology Finance Platform, obtain a qualification certificate, and then apply for guarantees from the Korea Technology Finance Corporation or the Korea Trade Insurance Corporation. Once they pass the guarantee review, they can receive loans from partnering banks, namely Hana Bank and IBK Industrial Bank of Korea.

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