South Korea launches 705 billion won R&D commercialization fund

South Korea's Ministry of Trade, Industry and Energy has launched the ‘Industrial R&D Innovative Enterprise Preferential Package Finance Program,’ a 705 billion won initiative designed to support the commercialization and global expansion of companies with excellent industrial technology R&D performance.

The program targets companies that have completed or achieved excellent ratings in Ministry-led R&D projects within the last five years. To facilitate this, Hana Bank and IBK Industrial Bank of Korea have contributed 47 billion won in guarantee resources.

The Korea Technology Finance Corporation (KIBO) will provide 405 billion won in ‘Project Commercialization Guarantees’ over the next three years. Unlike traditional guarantees based on credit, this model evaluates the business potential and growth of specific R&D results. Eligible companies can receive up to 5 billion won in working capital, or up to 10 billion won including facility funds, with a 100% guarantee ratio.

Additionally, the Korea Trade Insurance Corporation (K-SURE) will provide 300 billion won in ‘R&D Innovative Enterprise Export-Import Guarantees.’ This supports companies with up to 10 billion won for export preparation, manufacturing, and raw material imports. Companies located outside the capital region or those participating in the M.AX Alliance may receive special limits up to 2.5 times the standard amount.