Fund Offers US$1 Million for SME IP Support
21 October 2013
The Korea Credit Guarantee Fund’s (KODIT) IP guarantee, providing guarantees of up to W1 billion (US$890,000) to start-ups and small and medium enterprises (SMEs) based on their IPs, has become operational.
On August 6, 2013, the Korean Intellectual Property Office (KIPO) and KODIT signed a “Working Agreement for Vitalizing IP Financial Support,” to provide IP-based guarantees at the KODIT headquarters in Seoul.
Under the agreement, KIPO is to support the cost of evaluating the value of IPs held by start-ups and SMEs, while KODIT is to guarantee the results of the IP evaluations in order for companies to procure funds for commercializing their IPs. Around W300 billion (US$268 million) is to be provided in guaranteed support with KODIT’s consideration on budget increase depending on the programme’s success.
“The agreement is expected to make it easier for companies with excellent IP to procure funds,” said KIPO commissioner Kim Young-min. “We will actively support this to help increase IP-based financing in Korea.”
The IP-based guarantee is not designed to set differential guarantee ceilings based on companies’ sales records, but to provide a guaranteed ceiling of W1 billion, according to the results of evaluation of the IP held by the companies, so that those possessing excellent IP benefit the most.
KIPO also signed a memorandum of understanding with the Korea Development Bank in March for IPbased security loans, linking IP right evaluation results to the process of securing loans from banks.
