IBK Launches Special Facility Investment Support Program for Promising Startups

IBK holds its 64th anniversary ceremony at its headquarters in Jung-gu, Seoul, on August 1. Bank President Kim Sung-tae delivers his speech. (Photo: IBK)

IBK announced that it will implement the 2 trillion won so-called Special Support Program for Investment in Facilities by Start-up Companies starting from July 25 to support start-ups wishing to invest in their facilities.

This program will reduce the interest rate by up to 1.5% for the initial purchase of business sites, allowing small and medium-sized enterprises (SMEs) and business owners within seven years of establishment to operate their businesses stably without the burden of paying excessive interest on debt.

Additionally, when linked with local government interest rate subsidies, an additional interest rate reduction of up to 2 percentage points is possible, allowing for a total interest rate cut of up to 3.5 percentage points.

This enables startups to secure facility funds for ultra-low interest rates of around 1%, with a special support program totaling 1.8 trillion won.

IBK plans to expand this program beyond its initial agreement with the South Gyeongsang Provincial Government to include other local governments, such as the Gyeonggi Provincial Government in the future.

To support working capital needs for raw materials and labor costs associated with increased employment following facility investments, IBK has signed a 200 billion won business agreement with Korea Credit Guarantee Fund and Korea Technology Finance Corporation (KOTEC), offering a maximum interest rate cut of 1.3 percentage points and a maximum guarantee fee cut of 0.5 percentage points to minimize financial burdens and lower the cost of debt for startups.

Moreover, customized consulting services will be provided for each company in areas such as production, organization, and financial management to actively support startups that have received facility investment in stabilizing their business operations.

“Just as securing one’s first home holds significant meaning for an individual, securing one’s first business site holds symbolic significance for a startup company,” said Kim Sung-tae, president of IBK. “We will continue to provide comprehensive support to further activate Korea’s startup ecosystems.”

Foreign Direct Investment Briefing for Promising Korean Companies

IBK announced that it successfully held the IBK Foreign Direct Investment (FDI) Briefing for promising Korean companies seeking to attract foreign direct investment at the IBK Financial Tower in Jung-gu, Seoul on July 3.

Approximately 150 employees from Korean companies interested in receiving foreign direct investment attended the briefing. Amidst a recent increase in foreign investors’ activities in Korea, Korean companies showed a big interest as their registrations for the briefing closed early shortly after the announcement.

During the briefing, experts from the Korea Trade-Investment Promotion Agency (KOTRA) and Invest Seoul introduced foreign investment trends and various support programs. The briefing included a Q&A session to answer questions from the attending companies.

Specifically, comprehensive practical information was provided, including: KOTRA’s current status of foreign investor discovery and matching programs; Invest Seoul’s foreign investment support programs such as legal, tax, accounting, and rental fee support and consulting; and IBK’s financial and non-financial services related to foreign direct investment and practical processing matters.

“IBK hopes this briefing serves as an opportunity to strengthen the global investment attraction capabilities of Korea’s promising companies with technological expertise and leads to their actual attraction of foreign investment,” an IBK official said.

IBK Changgong 2025 European Accelerator in Germany Program

IBK announced on July 30 that it will launch the IBK Changgong 2025 European Accelerator in Germany Program to support innovative venture startups hoping to expand into Europe.

This program will include eight innovative and venture startups including TMEV Net and ModigenceVision.

They were selected through a joint review with the Korea Institute of Science and Technology (KIST) Europe.

The selected companies will participate in a preliminary program in Korea with local experts, including business diagnoses, business model reviews, and entry strategy development, and then receive support for a one-week local incubation program in Germany including IR activities, business meetings, and networking with collaborative institutions.