Kibo, Kyongnam Bank partner to provide W50b in financing for future strategic industries

The Korea Technology Finance Corporation, known as Kibo, has teamed up with Kyongnam Bank to provide 50 billion won ($35.3 million) in financial support to technology-focused small and medium-sized enterprises operating in future strategic industries such as AI, biotech and defense.

Kibo announced Wednesday that it had signed an MOU with Kyongnam Bank on productive financial support for nurturing future strategic industries under the "AtoF" framework.

The agreement aims to improve financing access for technology SMEs with high growth potential in future strategic sectors, while strengthening their technological competitiveness and supporting stable expansion.

Under the deal, Kibo will supply 50 billion won in guarantee-fee-subsidized credit backed by a 500 million won contribution from Kyongnam Bank. The bank will cover 0.5 percentage points of the guarantee fee for each eligible company for two years, reducing the financial burden on SMEs.

Eligible companies are new-technology businesses that meet Kibo's technology guarantee requirements and operate in one of six advanced strategic industries: AI, biotech, cultural content, defense, energy and advanced manufacturing.

The two institutions said they plan to step up cooperation to actively identify promising companies in future strategic industries and ensure productive financing flows smoothly to firms with strong innovation capacity and growth potential.

The agreement aligns with the broader "productive finance" policy push to redirect capital away from real estate-backed lending and toward companies with proven technology and growth prospects. Technology SMEs that lack sufficient collateral can use Kibo guarantees to improve their access to credit and benefit from the bank's fee subsidy, lowering their overall borrowing costs. The initiative specifically targets future growth sectors — AI, biotech, defense and energy — with the aim of expanding capital supply to innovative companies.

"To strengthen competitiveness in future strategic industries, it is crucial that small and medium-sized venture companies with outstanding technology and innovation capabilities receive the funding they need in a timely manner," Kibo Chairman Kwon Hyeong-taek said. "We will continue to expand cooperation with financial institutions to actively support high-quality technology companies in sustaining their growth."