Korea Credit Guarantee Fund to offer up to W20b in full guarantees for next-generation unicorn firms

The Korea Credit Guarantee Fund will provide up to 20 billion won ($14.5 million) per company in special guarantees for firms selected under its next-generation unicorn program.

The fund, known as Kibo, announced Friday that it had signed a financial support MOU with Shinhan Bank, Woori Bank and Hana Bank for companies selected under the "Next-Generation Unicorn Fund Investment-Linked Special Guarantee" program.

The agreement was designed to ease the financial burden on companies chosen under the "Next-Generation Unicorn Fund Investment and Guarantee" project — a joint initiative by Kibo and Korea Venture Investment — and to provide scale-up funding.

Under the MOU, Kibo will supply special guarantee facilities of up to 20 billion won per company, funded by special contributions from Shinhan Bank, Woori Bank and Hana Bank. The guarantee ratio will rise from the existing 85 percent to 100 percent, with the guarantee fee rate fixed at 1.0 percent. The partner banks will subsidize the guarantee fees, with the subsidy rate varying by bank.

Eligible companies are next-generation unicorn designees that meet Kibo's technology guarantee requirements. Selected firms are unlisted small and medium-sized enterprises valued at 200 billion won or more but less than 1 trillion won, with the unicorn fund providing matching investment of up to 20 billion won.

Supported sectors span AI and deep tech fields, including AI, system semiconductors, biotech and health, future mobility, eco-friendly energy, robotics, cybersecurity and networks, space and aerospace, next-generation nuclear power plants and quantum technology.

Kibo Chairman Kwon Hyung-taek said the fund had "laid the groundwork for financial support so that next-generation unicorn companies can secure scale-up funding at the right time as they grow into global unicorns," adding that Kibo would "continue expanding collaboration with related organizations to support the growth of innovative AI and deep tech companies."