Programs for Pre-seed and Early-Stage Companies
Programs for Pre-seed and Early-Stage Companies
Program Overview
- The guarantee amount is determined at the stage of pre-startup via assessment of startup projects. Upon completion of business registration, the guarantee support is extended.
Eligible Companies
- Ordinary Startup: Would-be business founders who plan to commercialize excellent technologies or business ideas.
- Expert Startup: Startups to be founded by experts including professors, researchers, technical masters and master mechanics etc.
Procedure
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01.Technology Appraisal
- Determination of guarantee amount based on the assessment of commercial viability of the startup projects
- Notification of determined guarantee amount
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02.Mentoring
- Provision of startup mentoring programs including necessary information for a successful business starting
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03.Business Founding
- Business registration and getting the business started
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04.Guarantee Review
- On-site visit to business premises
- Verify the business is running as planned
- Conduct technology appraisal using KTRS and assign Technology Ratings(AAA~D)
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05.Provision of Guarantee
- Issuance of letter of guarantee
- Disbursement of guaranteed loan
Eligible Credit Facilities
- Working capital loans for the startup funding
- Fixed asset loans for paying security deposit of business premise
Guarantee Limit by technology ratings
| CCC | B, BB | BBB | A and Higher | |
|---|---|---|---|---|
| Ordinary startup | 0.1 billion won | 0.3 billion won | 0.5 billion won | |
| Expert startup | 0.1 billion won | 0.3 billion won | 0.7 billion won | 1 billion won |
Preferential Supports
- Guarantee coverage ratio: 100%
- Guarantee fee deduction: 0.7%p deduction
Program Overview
- Normally, the owners, key persons or CEOs of applicant companies are required to provide additional personal guarantee for the payment of the debt for fear that the companies fail to do so.
- In this program, however, the startup founders are free of the responsibility to stand as a guarantor. The program encourages people to venture into starting businesses by reducing the burden of business failure, contributing to activation of business startup and to the increase of job creation.
Eligible Companies
- Corporations with less than 7 years of business operation meeting following conditions
- Those who are newly applying for the guarantee
- Those who are benefiting guarantee support only through this program
Preferential Supports
- Exemption of responsibility to provide a third-party personal guarantee
(Only when real owner of the company holds the position of the representative director)
Eligible Credit Facilities
- Working capital loan : 5-year long-term loan with installment payment schedule
- Fixed asset loan : 8-year long-term loan with installment payment schedule
Other Requirements
- Conclusion of 'Transparent Management Agreement' which requires the company to comply with accounting principles and notify major changes in business management to KOTEC in order to prevent the moral hazard arising from the personal guarantee exemption.
Program Overview
- This program was designed to encourage young talents with fresh ideas to start businesses and to expand the future growth potential of the national economy in the era of jobless growth.
Eligible Companies
- Companies with less than 5 years of business operation whose owner is aged 17 to 39
Eligible Credit Facilities
- Working capital loan for startup funding and business operation
- Fixed asset loans for paying security deposit of business premises
- Fixed asset loans for purchasing production equipments and facilities
Guarantee Limit per a Company
- Up to 300 million won
Preferential Supports
- Guarantee fee rate: pegged at 0.3% per annum
- Guarantee coverage ratio: 95% of the guaranteed loan
(100% coverage is applicable where the company is less than one year old and the guarantee amount is less than 100 million won)
Program Overview
- In order to better accommodate varying demands for startup supports, KOTEC provides customized and intensive guarantee supports for the sectors where technology-based business startups are booming and job growth potential thereof is relatively high.
Eligible Startup Sectors
| Sectors | Eligible Companies |
|---|---|
| Startups in Knowledge and Culture Industry | Businesses in innovative knowledge-based service industry and cultural contents industry, etc. |
| Challenger startups founded by science and engineering majors | Manufacturing businesses whose CEOs(or actual owners) have majored in science and engineering |
| Startups based on Technology career/root industry | Manufacturing businesses (including root industry*) whose CEOs(or actual owner) are aged 40 to 59 and with at least 10 years of experience in the same business field * Root industry includes such areas as casting, molding, welding, thermal treatment, surface treatment and plasticity processing. |
| Hi-tech & Growth-linked Startups | Any of following businesses :
|
Eligible Credit Facilities
- Working capital loan for startup funding and business operation
- Fixed asset loans for paying security deposit of business premises
- Fixed asset loans for purchasing production equipments and facilities
Preferential Supports
- Guarantee coverage ratio: 90% of the guaranteed loan
(100% coverage is applicable where the company is less than one year old) - Guarantee fee rate per annum
- Businesses with less than 3-year operation: 0.4%p deduction
(fee rate is fixed at 1.0% where the guarantee amount is less than 100 million won) - Businesses with less than 7-year operation: 0.3%p deduction
(fee rate is fixed at 1.0% where the guarantee amount is less than 100 million won)
- Businesses with less than 3-year operation: 0.4%p deduction
Program Overview
- This program was introduced to encourage the startup foundations by the technicians or skilled workers who are working at big-and-medium-sized enterprises.
Eligible Companies
- Businesses whose CEOs have more than 5 years of working experience at the big-and-medium-sized enterprises in the same field of technology.
- Spinoffs that are founded by the technicians who resigned from the big-and-medium-sized enterprises.
Preferential Supports
- Eligible for the 'New Startup Guarantee Program Free of Personal Guarantee Requirement'
- Guarantee fee rate per annum: 0.7%p deduction
(fee rate is fixed at 1.0% where the guarantee amount is less than 100 million won) - Recommendable for the Guarantee-Linked Investment
- Technology and management consulting supports