“This is the time for a new financial support system to create an environment in which innovative firms and financial service providers can grow together. Currently the funding volume for small business operators is 496 trillion won, of which 5.2 percent [about 26 trillion won] is taken up by technology financing firms. I will make sure to raise the ratio to 20 percent [100 trillion won] within a few years from now.”
“In order to encourage business start-up and relieve the financial burden of entrepreneurs in their initial development period, the role of investors like venture capitalists is important. But the role of banks in supplying working capital to help them continue their business without being withered due to lack of fund is equally important.”
—Shin Je-Yoon, chairman, Financial Services Commission
Earlier in July this year, the Financial Services Commission designated a technology credit bureau as a way to encourage banks to lend money to companies with promising technologies but little collateral and prior sales performance. (image credit: Kobizmedia)
SEOUL, Nov. 28 (Korea Bizwire) — Shin Je-Yoon, the chairman of the Financial Services Commission, hinted that the government would actively lend support to start-up firms by radically increasing the volume of technology financing. He said this on November 27 in the 2014 Creative Economy Exhibition held at COEX Convention Center in Seoul’s Gangnam.
Earlier in July this year, the Financial Services Commission designated a technology credit bureau as a way to encourage banks to lend money to companies with promising technologies but little collateral and prior sales performance.
The cumulative TCB tech credit loan volume has since increased rapidly to 4,359.9 billion won (in 7,603 cases) as of November 14 from 192.2 billion won (486 cases) in July. The commission predicted that the volume will rise to 15.5 trillion won next year and 25.2 trillion won by 2016.
In the near future, the commission will relieve the technology assessment cost of entrepreneurial firms by granting subsidies. In addition, it will exempt the assessment fees for those firms undergoing the same evaluation within six months’ time.
The financial regulator will also automatically include those firms receiving TCB tech credit loans as government-certified innovative start-ups and help them get additional points when they apply for government biddings initiated by the Public Procurement Service.
In the near future, the commission will relieve the technology assessment cost of entrepreneurial firms by granting subsidies. (image: Financial Services Commission)
By M. H. Lee (mhlee@koreabizwire.com)
