Korea Technology Finance Corporation (KOTEC) has selected 14 promising venture firms as this year’s first group of “Kibo-Start Venture Companies.”
The state-run corporation runs the program to help venture companies with high growth potential expand in global markets and undertake an IPO.
The candidates for the KOTEC’s support program are companies in their take-off stage after having been created three years ago or earlier. To be qualified for the program, a company also needs to be above certain levels in KOTEC’s technology and business evaluation, the proportion of equity capital, and sales.
KOTEC has formed a special screening committee comprised of internal and external members. To enhance the fairness and reliability of the screening process, KOTEC has invited experts from the banking industry and the Korea Venture Business Association as external members.
The 14 selected companies are Geumseong Innotec, Daewoo Metal, Dermal Korea, Semyung Tech, Ice Technology, IMCT, Onan Korea, Union Elecom, Genad System, GNST, Turbowin, 2E Consulting, Forcm and Huentek.
KOTEC’s assistance for each of the selected companies includes liquidity support of up to 5 billion won, including equity investment, for five years; application of a fixed guarantee rate (0.5%); a special guarantee ratio (95%); support for guarantee-linked investment; attraction of venture capital companies’ investment; and support for listing on the KOSDAQ market via the special technology-based listing system.
So far, KOTEC has selected a total of 47 Kibo-Star Venture Companies. KOTEC has nurtured 33 previously selected Kibo-Star Venture Companies into Korean-type hidden champions by providing a total of 20.5 billion won in new guarantees and 5.8 billion won in equity investment.
"We will intensively support excellent high-tech companies engaged in new growth industries to nurture them into small but strong global players in the future. We will make efforts to help excellent high-tech venture start-ups contribute to the growth of the national economy and job creation," a KOTEC official said.