IBK Industrial Bank of Korea will provide a total of 300 billion won in financial support for early-stage innovative startups in partnership with the Korea Credit Guarantee Fund. It will link support from an initial loan to follow-on assistance depending on a company’s growth stage and offer interest-rate reductions of up to 1.5 percentage points.

The bank said on Sept. 21 it signed a business agreement with the Korea Credit Guarantee Fund on joint support for the Startup Build-Up Program to build a growth ladder for early-stage innovative startups, and launched a dedicated product called IBK Step Up Loan.

The product targets early-stage startups that receive guarantee certificates under the agreement with the fund. It is designed as a phased financing structure that provides follow-on support to companies whose growth potential is proven after initial financial support.

The bank will offer interest-rate reductions of up to 1.2 percentage points for companies receiving initial support and up to 1.5 percentage points for those receiving follow-on support.

The signing ceremony was attended by Dae-young Kwon (권대영), vice chairman of the Financial Services Commission, Il-kwang Yoo (유일광), an executive director at the bank, and Seung-kwan Kim (김승관), an executive director at the Korea Credit Guarantee Fund, among others.

"I hope this support will become a starting point that gives new possibilities to early-stage innovative startups," Yoo said.