"Technology Special Loans of Up to 5 Billion Won"... The Export-Import Bank of Korea (KEXIM) Establishes 'Productive Inclusive Finance' for SMEs and Venture Companies

[Financial News] The Export-Import Bank of Korea (KEXIM) is introducing the 'Eximbank-style Productive Inclusive Finance' program to support the entire process of small and medium-sized enterprises (SMEs) and venture companies, from startup and growth to recovery.
According to KEXIM on the 13th, the 'Eximbank-style Productive Inclusive Finance' program was established to link investment and loans at various stages of a small and medium-sized enterprise's growth. The aim is to lower financial costs for companies. The core of the program is to support venture companies that possess technological capabilities but struggle to secure loans due to insufficient revenue. A new 'Technology Special Loan' is being introduced, which applies technology evaluations instead of credit ratings. Eligible companies can receive support of up to 5 billion won. Preferential interest rates will be provided to companies in Artificial Intelligence (AI), high-tech industries, and those located outside the Seoul metropolitan area.
A 'Rapid Special Loan' program is also being operated for small and medium-sized enterprises (SMEs) with import and export records, providing up to 500 million won based solely on financial ratings and business performance evaluations, without a credit rating. In addition, special contributions will be made to the Korea Credit Guarantee Fund (KODIT) to cover guarantee fees for three years, up to a total of 3.0 percentage points. Improvements to the credit rating system are also being pursued to reduce the interest burden on mid-to-low credit companies.
Financial packages combining investment and loans will be provided in conjunction with venture funds in the fields of AI, advanced strategic industries, and K-culture. We also plan to strengthen joint support with VC firms and financial institutions to enable companies that have received investment from KEXIM to grow through technology loans.
For restructured small and medium-sized enterprises (SMEs) that faithfully repay principal and interest, interest rates will be lowered to 1% per annum. 16.2 billion won in long-term unrecovered special bonds will be written off to support their recovery. KEXIM also plans to continue existing programs such as the 'Special Crisis Response Program' and the 'Support for Shared Growth of SMEs Partnering with Large Corporations' in parallel.
An official from KEXIM stated, "Through this program, we will create an ecosystem that supports the entire growth process of domestic small and medium-sized venture companies, from founding to expansion and re-challenge."


[email protected] Park Mun-su Reporter