KOTEC steps up efforts to identify innovative firms in Daegu–Gyeongbuk, linking guarantees with investment

[Financial News] The Korea Technology Finance Corporation (KOTEC) has set out to build a financial support system for Daegu–Gyeongbuk venture firms spanning identification, investment attraction and growth financing. It plans to expand cooperation with local startup-support organizations, venture investors and banks to support the growth of promising companies.
 According to industry sources on the 27th, KOTEC signed an 'Agreement on Identifying Startups in Gyeongbuk’s Strategic Industries and Innovative Growth and Linking Them to Investment' with the Gyeongbuk Center for Creative Economy and Innovation on the 26th at the center in Gumi, North Gyeongsang Province.
 The agreement was pursued to support the growth of technology-driven startups in the region by combining the two organizations’ capabilities in identifying and nurturing companies with their financial support functions.
 Under the agreement, the Gyeongbuk center will identify startups with strong growth potential and recommend them to KOTEC. KOTEC will offer recommended companies preferential guarantees, including reduced guarantee fees, and help connect them with investment. It also plans to provide non-financial support, including technology protection, technology transfer and consulting.
 After the signing ceremony, an investor relations (IR) presentation was held for four startups recommended by the Gyeongbuk center. Pican Soft, Posol Innotec, Eta Electronics and Nest took part, introducing their main businesses and technologies and highlighting their growth potential.
 Lee Sang-chang, a director at KOTEC, said, “We hope this agreement will help expand opportunities for local startups with excellent ideas and technological capabilities to attract investment and grow,” adding, “We will work closely with relevant local organizations to proactively identify innovative companies and inject new vitality into the local startup ecosystem.”
 Earlier, on the 21st, KOTEC also signed an 'Agreement on Productive Finance to Foster the Daegu–Gyeongbuk Region’s Venture Fund and Revitalize Its Venture Ecosystem' with Korea Venture Investment Corp. and iM Bank at EXCO in Daegu. 
 Under the agreement, Korea Venture Investment Corp. will establish and manage a regional venture fund, while iM Bank will offer preferential financial terms to local venture firms. KOTEC plans to support companies’ financing by supporting startups, recommending companies for investment and offering preferential guarantees. The key is to strengthen the supply of funding needed for local companies to grow by linking investment, guarantees and loans.

[email protected] Lee Ju-mi Reporter