Another layer of startup finance infrastructure has emerged in South Korea as the country introduces a new KRW 50 billion (~ USD 36 million) guarantee program led by the Korea Technology Finance Corporation (KIBO) in partnership with KB Kookmin Bank. The initiative focuses on early-stage technology firms, aiming to ease financing burdens and provide structured support for scale-up. This KIBO – KB Kookmin Bank partnership signals Korea’s continued effort to align financial institutions with startup ecosystem growth.

KIBO – KB Kookmin Bank Partnership: ₩50B Guarantee Program Launched for Tech Startups

On September 19, 2025, Korea Technology Finance Corporation (KIBO) announced the signing of a financial support agreement with KB Kookmin Bank to activate technology-driven startups and strengthen their growth potential.

The program will supply KRW 50 billion (~ USD 36M) in guarantees based on KB Kookmin Bank’s KRW 10 billion (~ USD 7.2M) contribution for guarantee fees. The bank will subsidize 1 percentage point of guarantee fees for up to two years.

Eligibility extends to small and medium-sized enterprises (SMEs) within seven years of founding that meet KIBO’s technology guarantee criteria, including ecosystem-building companies, innovation-driven startups, and firms recommended by KB Kookmin Bank.

Addressing Early-Stage Financing Bottlenecks for Tech-Driven Startups

Korea’s startup ecosystem has long struggled with financing bottlenecks at the early stage, when companies often lack sufficient collateral or credit history to secure loans. By linking KIBO’s guarantee framework with direct fee subsidies from KB Kookmin Bank, the program reduces upfront costs and creates a more predictable financing pathway.

This approach aligns with Korea’s broader innovation policies that emphasize scale-up support and a sustainable startup finance pipeline. Unlike traditional venture capital, which focuses on high-growth outliers, KIBO-backed guarantees target a broader pool of technology-driven SMEs, including those building long-term innovation capacity.

KIBO – KB Kookmin Bank Partnership: A Practical Support Mechanism for Tech Startups

KIBO Chairman Kim Jong-ho emphasized the program’s role in easing systemic financing barriers:

“This agreement provides a practical support mechanism to address the financial challenges faced by technology startups. KIBO will continue to expand cooperation with financial institutions to support promising startups and actively contribute to a sustainable ecosystem.”

Both institutions are also committed to strengthening cooperation to jointly address financing obstacles and provide tailored financial solutions, ensuring that startups with innovative technologies can grow into future growth engines for the Korean economy.

Strategic Move Toward Hybrid Financing Model

The ₩50B program highlights how Korea is leveraging financial institutions as ecosystem enablers. Guarantee-backed financing offers a bridge between policy-driven funds and private capital markets, filling the gap that often leaves startups underfunded during their first seven years.

For global readers, the partnership illustrates Korea’s evolving strategy: while the country is already home to robust government-led startup programs, the integration of banks into early-stage support reflects a move toward a hybrid financing model similar to those seen in advanced venture ecosystems.

This positions Korea not only as a venture capital hub in Asia but also as a country experimenting with innovative financial mechanisms to support startup growth.

Building A More Resilient Finance Architecture

The KIBO – KB Kookmin Bank partnership underscores South Korea’s commitment to lowering barriers for early-stage technology firms while strengthening the long-term sustainability of its startup ecosystem.

By addressing the financing gap with guarantees and bank-backed subsidies, Korea is building the financial infrastructure needed for more startups to transition from early promise to global competitiveness.

If executed effectively, the program could become a template for cross-sector collaboration in venture finance, reinforcing Korea’s ambition to secure its place among the world’s leading startup ecosystems.

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