Programs for Tech Innovation & Job-Creation

Guarantee Support for R&D Activities

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.

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	Analysis on commercial viabilityof the R&D project Analysis on economic feasibility
Pre-Commercialization	R&D Appraisal Model
Commercialization	KTRS	Analysis on commercial viability of the R&D project

Eligible Companies
Phase	Eligible Companies
Development	Companies with Technology Rating B and above Companies whose R&D project is deemed 'economically feasible'
Pre-Commercialization
Commercialization	companies who have successfully completed R&D prodects self-funded or funded by the government or public agencies within the past 3 years.

Eligible Credit Facilities
Phase	Eligible Credit Facilities
Development	Working capital loan for covering R&D costs
Pre-Commercialization	Working capital loan for covering R&D costs
Commercialization	Working capital loan for commercialization and mass production Fixed asset loan for purchasing production equipments and facilities

Guarantee coverage ratio
- For development and pre-commercialization phases: 95%~100%
- For commercialization phase: 85%~95%
Guarantee fee rate : 0.3%p deduction

Guarantee Programs Based on Intellectual Property(IP)

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)
- 1st: Valuation of IP by using valuation model (Output : monetary value)
- 2nd: Assessment of the commercial viability by using KTRS (Output : ratings)
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

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

Technology Appraisal (Two-prong approach)
- 1st: Assessment of the commercial viability by using KTRS (Output : ratings)
- 2nd: Valuation of IP by using valuation model in case where the amount of guarantee application exceeds 300 million won
Preferential Supports
- Guarantee coverage ratio : 95%
- Guarantee fee rate : 0.3%p deduction

Guarantee for Climate Technology Guarantee for Cultural Contents Completion

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

Cultural contents providers
(Cultural contents include cartoon, animation, characters, digital contents, music, movie, broadcasting, game and art performance)

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

Guarantee Support for Fin-Tech Companies Good Job Guarantee Program Special Program for Job-Creating SMEs