"Supporting business succession and technological innovation"... KOTEC teams up with Shinhan Bank

[Financial News] Korea Technology Finance Corporation (KOTEC) said on the 31st that it had signed a financial support agreement with Shinhan Bank for mergers and acquisitions (M&A) to promote business succession and technological innovation.
The agreement was designed to address succession difficulties caused by the aging of small business owners and to ease the financial burden on companies pursuing M&A, thereby laying the groundwork for sustainable growth.
Under the deal, KOTEC will provide 20 billion won in special contribution guarantee programs, funded by Shinhan Bank's 1 billion won special contribution. KOTEC plans to offer preferential benefits such as raising the guarantee ratio from 85% to 100% for three years and cutting the guarantee fee by 0.3 percentage point for three years.
It will also provide 21.4 billion won in guarantee fee support programs based on Shinhan Bank's 300 million won guarantee fee support fund. Shinhan Bank will cover 0.7 percentage point of the guarantee fee for two years.
Eligible companies are those that meet KOTEC's technology guarantee requirements and qualify for either business succession-type M&A guarantees or technology innovation-type M&A guarantees.
Lee Sang-chang, a director at KOTEC, said, "This agreement is expected to help prevent management gaps at small and medium-sized enterprises caused by the aging of business owners, while also promoting the continued growth and innovation of technology companies." He added, "We will continue to strengthen the support base for the sustainable growth and smooth succession of technology companies."
[email protected] Lee Ju-mi Reporter