KOTEC supports high-tech SMEs

By Kim Tong-hyung

Established in 1989, the Korea Technology Finance Corporation (KOTEC) contributed to building the foundation of Korea’s mighty technology industry through financially supporting start-ups and small- and medium-sized companies.

The state-run financer believes its role will only become bigger in future years as policymakers look to spark entrepreneurship and solidify the country’s status as a destination for technological innovation.

KOTEC says it has guaranteed around 210 trillion won (about $187 billion) of loans to 300,000 small- and medium-sized enterprises (SMEs) in the technology industry in the past 23 years.

KOTEC Chairman Kim Jung-gook has approved plans to strengthen the amount of guarantees this year because smaller firms have been experiencing trouble in accessing finances amid the worsening global conditions, highlighted by the troubles in Europe and the subduing domestic economy.

``We will guarantee 4.5 trillion won in new loans this year, 700 billion won more than we approved last year. About 2.3 trillion won will be allocated to start-ups as the priority is to create more jobs and inspire entrepreneurship,’’ said a KOTEC official.

``We need to do our part in improving the activity of the economy and raising the competitiveness of SMEs, so we are carefully designing our strategies in selecting the firms on the receiving end of our help, while trying to streamline with government policies.’’

KOTEC has also been stepping up its corporate social responsibility (CSR) efforts. It has been operating a mentoring program for people looking to set up their own businesses, providing consulting and guaranteeing loans for promising would-be entrepreneurs. The start-ups that received help through KOTEC’s mentoring program hired nearly 200 people last year, according to the company.

KOTEC is also helping migrant workers, who have become vital for small companies. It is providing financial support for these foreign employees in buying plane tickets and covering other costs to visit their families at home during holidays or for personal reasons.

KOTEC employees are teaching math, English, science and economics at local community centers devoted to children from low-income families. They are also regularly involved in volunteer work at community centers and farming villages.