Kibo, NH NongHyup Bank sign W20b deal to back North Jeolla future industries

The Korea Technology Finance Corporation has teamed up with NH NongHyup Bank to provide 20 billion won ($14.7 million) in agreement-based guarantees to small and midsize companies operating in North Jeolla Province's future strategic industries.

Kibo signed the MOU — titled "Co-growth Financial Support for the Great Leap of North Jeolla's Future Industries" — with NH NongHyup Bank at the bank's North Jeolla regional headquarters in Jeonju on Friday.

The agreement is designed to strengthen the competitiveness of North Jeolla's future strategic industries, including AI, agri-bio and clean energy, and to support the growth of promising companies in the region.

Under the deal, Kibo will use 1 billion won contributed by NH NongHyup Bank as seed funding to supply a total of 20 billion won in special contribution guarantees. Eligible companies will see their guarantee ratio raised from 85 percent to 100 percent for three years, along with a 0.3 percentage point reduction in guarantee fees.

Support is open to small and midsize companies that meet Kibo's technology guarantee requirements and have their headquarters, primary place of business or factory in North Jeolla Province. Eligible firms must operate in one of six advanced strategic sectors: AI, biotech, cultural content, defense, energy and advanced manufacturing.

Kibo and NH NongHyup Bank plan to expand financial support for promising companies in North Jeolla and build a "North Jeolla growth ladder" through tailored assistance at each stage of a company's development.

"We hope this agreement will underpin the growth of promising small and midsize companies that will lead North Jeolla's future strategic industries," said Kim Tae-ju, head of Kibo's Honam regional headquarters. "We will broaden cooperation with financial institutions to identify outstanding technology companies and support the competitiveness and balanced growth of the region's future industries."