Programs for Tech Innovation & Job-Creation
Programs for Tech Innovation & Job-Creation
Program Overview
- This program was introduced in 2008 in order to help SMEs that face difficulty in financing their R&D efforts despite good technological competence. By facilitating innovative SMEs' R&D activities, the program is expected to lead SMEs' technological advance, contributing to the GDP growth and job creation.
Program Features
- Provides comprehensive supports throughout the entire life cycle of R&D projects
- R&D life cycle are broken down into three phases: Development Phase, Pre-Commercialization Phase, Commercialization Phase
Technology Appraisal Models and Methods employed at each phase
Phase | Appraisal Models | Appraisal Methods |
---|---|---|
Development | R&D Appraisal Model |
|
Pre-Commercialization | ||
Commercialization | KTRS |
|
Eligible Companies
Phase | Eligible Companies |
---|---|
Development |
|
Pre-Commercialization | |
Commercialization |
|
Eligible Credit Facilities
Phase | Eligible Credit Facilities |
---|---|
Development |
|
Pre-Commercialization | |
Commercialization |
|
Preferential Supports
- Guarantee coverage ratio
- For development and pre-commercialization phases: 95%~100%
- For commercialization phase: 85%~95%
- Guarantee fee rate : 0.3%p deduction
Guarantee backed by IP Valuation
- Program Overview
- In this program, KOTEC conducts IP valuation to determine the monetary value of subject IP and provides credit guarantee up to the value amount of the IP in order to help the IP holder to commercialize it successfully and to facilitate the IP financing in Korea.
- Eligible Technologies
- Intellectual properties such as patent rights, copyrights, trademark rights, etc.
- Eligible Companies
- Companies that are holding IP rights and trying to commercialize them
- Companies whose Technology Rating is B or higher
- Eligible Credit Facilities
- Working capital loan intended for IP commercialization
- Technology Appraisal (Two-prong approach)
- Acquisition of Collateral
- KOTEC asks the guaranteed company to pledge the IP as collateral in order to prevent transfer of the IP after guarantee support.
- Preferential Supports
Preferential Supports Technology Rating BB or lower BBB or higher Guarantee Coverage Ratio 90% - 95%
Guarantee Fee Rate Reduction 0.3%p - 0.5%p
Guarantee for IP Acquisition
- Program Overview
- KOTEC provides guarantee support to those who are planning to acquire an IP right from a third party and commercialize it, contributing to the activation of technology transfer and IP financing in Korea.
- Eligible Companies
- Companies in the process of the IP acquisition to commercialize IPs in such ways as purchasing, licensing, etc.
- Eligible Credit Facilities
- KOTEC provides comprehensive supports throughout the entire phases of IP acquisition and commercialization
Eligible Credit Facilities by M&A phase Phase Eligible Credit Facilities Acquisition of IP - Working capital loan for initial deposit, royalty and purchasing price
Commercialization - Working capital loan for additional R&D costs
- Working capital loan for making prototypes
Mass Production - Working capital loan for commercialization and mass production
- Fixed asset loan for purchasing production equipments and facilities
- KOTEC provides comprehensive supports throughout the entire phases of IP acquisition and commercialization
- Technology Appraisal (Two-prong approach)
- Preferential Supports
- Guarantee coverage ratio : 95%
- Guarantee fee rate : 0.3%p deduction
Program Overview
- The launching of the 'New Climate Regime' in November 2016 in the wake of the Paris Accord brought home to policy makers the necessity of nurturing climate technology firms. In tandem with the government policy direction, KOTEC introduced this program to provide financial support to climate technology SMEs as a leading climate financing institution in Korea.
Eligible Companies
- SMEs that are proved to possess climate technologies via eligibility screening
- Companies whose Technology Rating is B or higher
Eligible Credit Facilities
- Working capital loan / fixed asset loan
Technology Appraisal
- Use of CTRS(Climate Technology Rating System) in case where the company is in the process of commercializing climate technology.
Preferential Support
- Guarantee fee rate : 0.2%p deduction
Program Overview
- A guarantee is issued to a financial organization so that a culture content producer can procure funds necessary for cultural goods production. When productions are finished and delivered, the loan is repaid with the sales revenue or related profits
Eligible Companies
- Cultural contents providers
(Cultural contents include cartoon, animation, characters, digital contents, music, movie, broadcasting, game and art performance)
Guarantee Limit
- Up to 5 billion won per a project
Technology Appraisal
- Application of the 'Cultural Contents Appraisal Model'
Program Procedure
-
01
Recommendation Committee
Korea Creative Content Agency
-
02
Technology Evaluation
KOTEC
-
03
Loan Approval
Financial Institutions
-
04
Management Committee
Korea Creative Content Agency
Pre-conditions to be met
- Sales revenue and profit arising from the sales of cultural products should be used to pay the guaranteed loan
- The account receivable arising from pre-order sales should be transferred to KOTEC
Preferential Supports
- Guarantee coverage ratio : 95%
- Guarantee fee rate : 0.2%p deduction
Program Overview
- This program was initiated by KOTEC in its attempt to ensure efficient financial support for the growth of fin-tech industry and and enhancement of financial competitiveness of the nation
Eligible Companies
- Companies running business in the following fields
- Mobile payment, mobile remittance, crowd funding
- Financial software platform
- Financial data analysis
- Mobile financial security, mobile certification
Eligible Credit Facilities
- Working capital loan and fixed asset loan for fin-tech related businesses
Preferential Supports
- Guarantee coverage ratio : 90%
- Guarantee fee rate : 0.3%p deduction
- Approval criteria relaxation : period of credit history check shortened from the past 1 year to 6 months
Program Overview
- Unemployment is the most serious problem in Korea, as the jobless growth has lasted for a long period of time. As a measure to tackle the problem, KOTEC introduced the 'Good Job Guarantee Program' to help SMEs increase job opportunities.
Eligible Companies
- Those job-creating SMEs who satisfy the following requirements
- The number of full-time employees is increased by more than 20% year-on-year
- Completion of the following measures during the past one year: non-regular worker's transition into regular employee status, reemployment of career-stunted women, employment of the disabled, employment of the graduates from vocational high schools, or meister high schools
- Retainment of 30 or more full-time employees
Preferential Supports
- Guarantee coverage ratio : 90~95%
- Guarantee fee rate : 0.3~0.4%p deduction
Program Overview
- In order to offer special support for the job-creating efforts of the SMEs, KOTEC extends additional guarantee supports to help them cover the costs of hiring new workers.
Eligible Companies
- Companies that have hired new employees within the past 6 months
Preferential Supports
- Additional Guarantee Support : 30~50 million won per a new employee (up to 500 million won)
- Guarantee ratio : 95%
- Guarantee fee rate : pegged at 1.0%
- Approval criteria relaxation : period of credit history check shortened from the past 1 year to 6 months