Korea Technology Finance Corporation (KOTEC) Provides 340 Billion Won in Guarantees to R&D Commercialization Firms; to Expand Support to Biotech and Other New Growth Sectors Next Year

[Financial News] Policy financing support is being strengthened to help small and medium-sized enterprises (SMEs) turn technologies developed through research and development (R&D) into actual products and revenue. The support is intended for companies that are struggling to commercialize their technologies because, despite succeeding in developing them, they have been unable to secure the funds needed to make prototypes and build mass-production facilities.
 According to industry sources on the 5th, KOTEC has provided a total of 340 billion won in guarantees through the 'R&D Commercialization Project Guarantee' and 'R&D Commercialization Securitization Guarantee' programs it introduced this year. It has met its entire annual guarantee supply target since the programs were launched in June.
 The significance of this guarantee support is that it has broadened the scope of financial assistance so that government R&D investment can lead to actual business results rather than stopping at the technology development stage. Even when their technologies are strong, SMEs with insufficient collateral or business track records struggle to raise the funds needed to produce products and enter the market after completing research and development.
 The R&D commercialization guarantee is a program whose legal basis was established through an amendment to the Act on the Promotion of Technology Innovation of Small and Medium Enterprises. It was introduced separately from existing policy guarantees to support the commercialization efforts of companies with results from government R&D projects or technologies transferred from public research institutions.
 KOTEC provides guarantees to help the companies raise funds for making prototypes and building mass-production facilities. The program focuses on easing companies’ financing burdens by linking technical evaluations with the commercial potential of their R&D results.
 Cases of support are already emerging. Through its R&D Commercialization Project Guarantee, KOTEC provided 1.5 billion won to Company A, which developed AI-based automation technology for nondestructive testing. It also provided 1 billion won to Company B, which developed nanocomposite materials that can be used in biotechnology, medical devices and semiconductors.
 Through its R&D Commercialization Securitization Guarantee, KOTEC provided 2.5 billion won to Company C, which developed a multi-frequency ultrasonic beauty device using a piezoelectric element it developed in-house. Company C is an aspiring mid-sized company in the K-beauty sector that is pursuing expansion into overseas markets.
 Beyond providing financial support to individual companies, KOTEC is also expanding a cooperative framework that connects national R&D results with funding for commercialization. The framework combines information on R&D results held by public institutions under the Ministry of SMEs and Startups, the Ministry of Trade and Industry, the Ministry of Science and ICT, and the Ministry of Climate, Energy and Environment (MCEE) with KOTEC’s technical evaluation and guarantee capabilities. The plan is to identify technology companies with strong commercialization potential and provide them with the funds they need in a timely manner.
 The scope of financial support will also expand next year. KOTEC plans to extend its support to the four new growth sectors selected by the Ministry of SMEs and Startups: emerging security, the pharmaceutical and biotech industry, Climate Tech and K-consumer goods. The aim is to ease financing burdens during the commercialization process after technology development and help SMEs in new growth industries enter the market.
 KOTEC Chairman Hyung-taek Kwon said, "If technology companies, despite having outstanding technological capabilities, cannot secure the funds needed for commercialization in a timely manner, it is difficult for R&D results to be realized in the market." He added, "We will expand financial support for commercialization so that national R&D results can lead to actual sales and corporate growth."
[email protected] Joo-mi Lee Reporter