IBK to expand loans for tech start-ups

Technology-based companies may get loans backed by their patent rights, without the need to present other tangible assets.

In a pledge to promote technology financing, the Industrial Bank of Korea launched a special loan product that allows companies to take loans amounting to 100 percent of the evaluated price for their patent rights, officials said Tuesday.

Companies that hold a patent recognized by the Korea Intellectual Property Office can apply for a loan from IBK after obtaining a technology certificate from the Korea Technology Finance Corporation.
 

For instance, if a company’s patent is recognized as having a value of 500 million won ($456,000), the company may get a loan of that value ― 300 million won backed by the patent and the remaining 200 million won by the KIFC certificate.

Also, the state-run bank will reduce the loan interest rate by up to 1.5 percent and cover the technology credit assessment fee, which is 5 million won per case, in an aim to alleviate the burden on SMEs.

“We expect that this new product will help the capital financing for technology firms that are experiencing difficulties in commercializing their patent rights,” said an IBK spokesperson.

IBK gave 2.2 trillion won in technology-based loans as of the end of February, the largest among local banks.

Bank president and CEO Kwon Seon-joo, who took office in late 2013, has stressed the state-run bank’s role in promoting technology financing and supporting SMEs.

By Bae Hyun-jung (tellme@heraldcorp.com)