The Kibo Technology Guarantee Fund announced on August 10 that it has signed a memorandum of understanding with IM Bank to support merger and acquisition (M&A) guarantee fee assistance aimed at promoting business succession and technological innovation.
Under this agreement, Kibo will provide a total of 14.3 billion won (approximately $10.8 million) in guarantee fee support based on IM Bank's guarantee fee assistance. IM Bank will support the guarantee fees for two years.
The support is aimed at acquiring companies pursuing M&A, which must meet Kibo's technology guarantee requirements. It will provide guarantees for working capital and facility funds.
The two organizations plan to establish a cooperative system to ensure that technology-based small and medium-sized enterprises receive timely financial support necessary for M&A.
Lee Sang-chang, a director at Kibo, stated, "This agreement is expected to alleviate the financial burden on technology companies pursuing M&A and to facilitate smooth business succession and technological innovation." He added, "We will actively support technology innovation companies in securing new growth engines through M&A by expanding cooperation with financial institutions for sustainable growth."
Meanwhile, Kibo has signed M&A financial support agreements with Woori Bank, Kyongnam Bank, Hana Bank, and Busan Bank this year, providing a total of 46 billion won in M&A guarantees by the end of July.
* This article has been translated by AI.
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