The Technology Guarantee Fund (Kibo) announced it will provide up to 113 billion won in financial support to domestic aerospace small and medium-sized enterprises in collaboration with the Woori Financial Group, Korea Aerospace Industries (KAI), and the Korea Aerospace Industries Association.

On the 9th, at the headquarters of Woori Financial Group in Hoehyeondong, Seoul, (from left) KANG Gu-young, President of KAI, Yim Jong-ryong, Chairman of Woori Financial Group, KIM Min-seok, Vice President of the Korea Aerospace Industries Association, and KIM Jong-ho, Chairman of the Korea Technology Finance Corporation are taking a commemorative photo. /Courtesy of KAI

Kibo noted on the 12th that it signed a memorandum of understanding for 'mutual cooperation in the aerospace industry' with the three organizations at the Woori Bank headquarters on the 9th. This agreement is a proactive measure to support small and medium-sized enterprises in the aerospace industry, which are experiencing difficulties amid recent global supply chain restructuring and export restrictions.

Under the agreement, the institutions will establish an organic mutual cooperation system and jointly discover excellent technology corporations in the aerospace field to provide tailored financial support. Additionally, Kibo will provide a guarantee of up to 113 billion won based on special grants and guarantee fee support from Woori Bank.

Initially, Kibo will supply a special grant agreement guarantee of 40 billion won based on the 2 billion won special grant from Woori Bank. The guarantee ratio will be raised from the existing 85% to 100% for a maximum of three years, and the guarantee fee will also be reduced by up to 0.3 percentage points for three years. Furthermore, based on a guarantee fee support fund of 1 billion won from Woori Bank, Kibo will provide a guarantee of 73 billion won for guarantee fee support, and Woori Bank will support the guarantee fee by up to 0.8 percentage points for two years.

The beneficiaries are corporations recommended by KAI or the association among new technology businesses that meet Kibo's guarantee technology requirements, or small and medium-sized enterprises engaged in the aerospace industry.

Kibo Chairman Kim Jong-ho said, 'This agreement has established a systematic cooperation plan to strengthen the competitiveness of the aerospace industry, which is concentrated with advanced technology, and to support innovative growth,' and added, 'Kibo will continue to respond to the restructuring of the global supply chain through active policy finance support for enterprises engaged in the aerospace industry and will strive to position the aerospace industry as a core national industry.'