Woori Bank to Build a 'Dream Ladder' for Young Startups ... KRW 200 Billion in Financial Support

[Financial News] Woori Bank is partnering with the Korea Credit Guarantee Fund (KODIT) and the Korea Technology Finance Corporation (KOTEC) to provide a total of KRW 200 billion in funding to young startups. To help early-stage companies with limited collateral and credit secure financing, the bank will provide working-capital guarantees of up to KRW 300 million per company and cover their guarantee fees for three years.
On the 23rd, Woori Bank announced that it had signed a memorandum of understanding with KODIT for the 'Y.E.S Youth Startup Dream Ladder Financial Support Program' to support young startups struggling to raise funds in the early stages of their businesses. The bank also signed a similar agreement with KOTEC and plans to provide young startups with a total of KRW 200 billion in funding through the two guarantee institutions.
'Y.E.S (Youth Easy Start-up)' represents the program's goal of helping young people take on entrepreneurship more easily and grow their businesses. Young startups are eligible if their representative or actual manager is between the ages of 17 and 39, inclusive, the company was established within the past seven years, and it meets KODIT's guarantee requirements.
Under the agreement, Woori Bank will make special contributions to KODIT and KOTEC. Based on these contributions, the two guarantee institutions plan to provide KRW 100 billion each, or KRW 200 billion in total, to improve young startups' access to financing.
Eligible companies can receive working-capital guarantees of up to KRW 300 million. In particular, they will be able to use the funds without paying guarantee fees for three years through 100% guarantee coverage during the first three years, application of the fixed guarantee fee rates set by the guarantee institutions, and Woori Bank's support for the guarantee fees.
Woori Bank will also offer preferential financial benefits, including waivers of electronic banking fees and preferential interest rates. The 'Y.E.S Youth Startup Dream Ladder Financial Support Program' will take effect in early October after detailed procedures are completed following the signing of the agreements.
Jin-owan Jung, president of Woori Bank, said, "Young entrepreneurs with good ideas and technologies should not have to stop pursuing their dreams because of financial burdens. Woori Bank will actively expand productive finance and, through cooperation with KODIT and KOTEC, serve as a strong 'dream ladder' so that young startups can grow steadily and leap toward a bigger future." 

[email protected] Lee Hyun-jung Reporter