IBK Industrial Bank will join hands with the Korea Credit Guarantee Fund to provide financial support worth a total of 200 billion won to promising youth startups.
IBK Industrial Bank said on Aug. 20 it signed a business agreement with the Korea Credit Guarantee Fund for financial support to promote promising youth startups. It said it will launch the IBK Promising Youth Startup Loan on Aug. 21.
The support will be available to promising youth startups that receive guarantee certificates from the Korea Credit Guarantee Fund under the agreement.
The bank will provide working capital and facility funding of up to 3 billion won per company. It will also offer interest rate cuts of up to 1.5 percentage points. The Korea Credit Guarantee Fund plans to lower guarantee fee rates under the agreement to reduce the financial cost burden on youth startups.
An official at the bank said, "We prepared this support measure to lower the financial entry barrier for promising youth startups that face difficulties in raising funds." The official said, "We will support the revitalisation of the startup ecosystem, including by reducing the burden of initial financial costs."
Ji-young Lee
ljy@d-today.co.kr