No cash, no commercialization: Kibo, Incheon to offer up to 3 billion won per firm for tech transfers

Korea Technology Finance Corp., known as Kibo, signed a working agreement Tuesday with Incheon Metropolitan City and Incheon Technopark to support technology commercialization by small and medium-sized enterprises in the Incheon region.

The agreement aims to ease the financial burden that technology-recipient companies face during the commercialization stage. Even when a small business acquires public or external technology, turning it into actual sales is difficult without follow-on funding for prototype development, equipment installation and working capital.

Under the agreement, Kibo will provide preferential guarantees to eligible companies, raising the guarantee ratio from 85 percent to 90 percent for three years and cutting guarantee fees by up to 0.3 percentage points over the same period. Incheon City will establish a dedicated technology-transfer financing program to offer low-interest loans, while Incheon Technopark will handle the selection and recommendation of eligible companies.

Eligible companies are small and medium-sized enterprises with a factory or place of business in Incheon that have received technology through Kibo's technology-trading platform Smart TechBridge or through a public technology transfer. Support limits are set at 500 million won (about $323,000) per company for working capital and up to 3 billion won for facility investment.

Smart TechBridge is Kibo's technology-trading platform that connects companies with technologies held by universities and public research institutions. For small businesses, it offers a way to shorten product development timelines by adopting external technology rather than relying solely on in-house research and development. The transition from licensed technology to a viable commercial operation, however, often generates additional funding needs.

Kibo, Incheon City and Incheon Technopark said they plan to use the agreement as a springboard to expand support for the commercialization of technology-transfer companies, foster a regional technology innovation ecosystem and strengthen the competitiveness of strategic industries.

"Technology transfer plays a vital role in maximizing the value of excellent technologies and driving corporate growth," Kibo Chairman Kim Jong-ho said. "Kibo will continue to expand cooperation with local governments to improve financial access for technology-transfer companies and contribute to regional economic vitality through support for technological innovation."