Strong technology, but limited credit... KOTEC supports 336 technology SMEs

[Financial News] The Korea Technology Finance Corporation (KOTEC) provided a total of 555 billion won in funding to 336 technology SMEs this year. In particular, it introduced a specialized guarantee to help commercialize research and development (R&D) technologies, providing 89 billion won to 40 companies.  
 According to KOTEC on the 12th, the total volume of Primary Collateralized Bond Obligation (P-CBO) issuance this year was 555 billion won. After issuing 238.9 billion won in the first half to support 129 companies, it issued an additional 316.1 billion won in second-half volume on the 5th, providing funding to 207 companies.
 A P-CBO is a financial product in which a special purpose company (SPC) purchases corporate bonds issued by SMEs that have difficulty issuing bonds based solely on their own credit, then issues asset-backed securities backed by those bonds. By guaranteeing the SPC’s liabilities, KOTEC enables SMEs to raise funds directly in the capital market.
 Of the funding supplied this year, 393.8 billion won was new funding, while 161.2 billion won was used to refinance existing corporate bonds. Financial support for environmentally friendly technology companies was also expanded. Of the new funding, 81.8 billion won was issued through Green Asset-Backed Securities (G-ABS), helping 39 environmentally friendly technology companies raise funds.
 Support for commercializing R&D outcomes was also strengthened. This year, KOTEC newly introduced a securitization guarantee for R&D commercialization and provided 89 billion won to 40 companies through issuances in the second half. The guarantee is available to companies that have completed government R&D projects or are pursuing the commercialization of technologies transferred from public research institutions. Moving beyond evaluations centered on past financial performance and technological capabilities, it comprehensively assesses companies’ capacity for technological innovation through R&D activities and their potential for future commercialization. 
 KOTEC plans to expand P-CBO supply and strengthen tailored financial support for green industries and R&D commercialization.
 “For technology SMEs’ innovative technologies to break into new markets and lead to industrial growth, the funding needed throughout their growth must be supplied on a stable basis,” said Hyung-taek Kwon, chairman of KOTEC. “We will improve technology companies’ access to capital markets and strengthen financial support tailored to their funding needs at each stage of growth.”  
[email protected] Joo-mi Lee Reporter