South Korea’s startup ecosystem is turning growing attention to social impact. With financial institutions now aligning around ESG, the latest partnership between KIBO and Woori Bank signals how policy finance and private banking can jointly nurture ventures tackling both market and social challenges. This agreement further highlights Korea’s evolving model of blended finance for sustainable innovation to founders and investors.

KIBO and Woori Bank Formalize ₩18.5B ($13.5M) Guarantee Agreement

Following the previous partnership with KB Kookmin Bank, Korea Technology Finance Corporation (KIBO) has now signed a financial support agreement with Woori Bank to expand funding opportunities for social ventures. Announced on September 22, 2025, the partnership will create a stable financial pathway for startups working at the intersection of innovation and social impact.

Under the agreement, KIBO will deliver a total of KRW 18.5 billion (~ USD 13.5 million) in guarantees, backed by Woori Bank’s special contributions and fee support.

Key provisions include:

• Special Contribution Guarantee: KRW 6 billion in guarantees funded by Woori Bank’s KRW 300 million contribution.
• Fee Support Guarantee: KRW 12.5 billion in guarantees based on Woori Bank’s KRW 200 million in fee support.
• Preferential Benefits for Selected Firms: Guarantee coverage raised from 85% to 100% for five years, with a 0.5 percentage-point reduction in fees.
• Additional Subsidy: Woori Bank will further lower fees by 0.8 percentage points for two years.

Eligible recipients are companies officially recognized as social ventures by KIBO’s Social Venture Value Evaluation Center.

KIBO & Woori Bank Partnership: Policy–Private Collaboration to Strengthen ESG and Solidarity Economy

The initiative is designed to address financial challenges faced by social ventures while promoting ESG (environmental, social, governance) management practices.

By linking policy finance with private banking, the program aims to accelerate the growth of Korea’s social solidarity economy—a sector increasingly recognized as essential for inclusive innovation and sustainable development.

Stakeholder Voices: Commitment to Social Ventures

KIBO Chairman Kim Jong-ho emphasized the broader significance of the agreement:

“This agreement is meaningful in that it establishes a cooperative framework for financial support tailored to social venture companies. As a policy finance institution, we will continue to support their growth and contribute to the expansion of ESG management.”

How Korea’s Social Venture Finance Shapes the Startup Landscape

South Korea has steadily advanced its infrastructure for social impact startups, beginning with KIBO’s establishment of the Social Venture Value Evaluation Center in 2018. Since then, dedicated tools such as the “Impact Guarantee” have created a foundation for specialized financing.

This latest agreement reinforces the dual-track approach—policy institutions anchoring credibility while private banks scale reach. It reduces risks tied to high upfront costs and limited collateral, giving founders more room to scale. At the same time, it signals to investors and policymakers that Korea’s institutions are aligning more closely around ESG-driven financing.

Meanwhile at a regional level, the move positions Korea as a reference point in Asia-Pacific for linking social venture policy finance with mainstream banking. It aligns with trends seen in Europe and parts of Southeast Asia, where blended finance models are being deployed to support inclusive growth.

Toward a Resilient Ecosystem for Korea’s Social Ventures

By expanding access to guarantees, the KIBO–Woori partnership enhances the financial resilience of social ventures that often balance dual goals of profitability and measurable social impact. Over the coming years, its success will be measured by how effectively these ventures scale, attract private investment, and contribute to ESG-driven markets in Korea and beyond.

For Korea’s startup ecosystem, this initiative eventually strengthens the narrative that social impact is not a peripheral concern but a central driver of innovation competitiveness.

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