In line with its policy initiative to boost innovative growth, South Korea will expand administrative and financial benefits for small companies with source technology and banks that approve loans based on intangible intellectual assets, the country’s intellectual property office said Sunday.
Starting Tuesday, the Korean Intellectual Property Office will offer a 50 percent discount on its annual IP fees for banks that hold collateral in the form of patents, utility model rights or design rights generated by small and medium-sized enterprises.
Holders of these IP rights have to pay annual fees, starting in the fourth year of registration.
“By reducing the financial burden for lenders, we expect to further invigorate IP-backed financing,” KIPO said in a release.
Last year, KIPO and the Financial Services Commission jointly unveiled a midterm plan to expand the volume of IP-backed financing to 2 trillion won ($1.7 billion) by 2022. Authorities also vowed to expand low-interest IP-backed loans so that SMEs could save up to 60 billion won in interest during the same period.
Also, startups will be offered a 70 percent fee reduction when requesting a preferential examination for a patent application, officials said. A preferential examination is an acceleration of the process and is granted in exceptional cases for reasons of urgency.
Under the new system, startups will see their corresponding fees plunge to 60,000 won from 200,000 won within three years of starting business and will also benefit from the fast-track procedure.
(
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