On the occasion of the 100-day anniversary of the announcement of ‘Plan to Facilitate Technology Finance’, Chairman Shin Je-Yoon visited branch offices of financial firms which mostly actively gave out loans based on technology assessment results. Offices of Shinhan bank and IBK in Sihwa Industrial Complex were selected as best performing bank branches in the capital area.
18 commercial banks signed MOUs with Korea Technology Finance Corporation and Korea Finance Corporation on June 30, 2014 and started providing funds to companies based on technology evaluation results. Shinhan Bank’s Sihwa Financial Center office provided technology finance accounting for 9.33 billion won for the past three months and IBK Sihwa office gave out 15.3 billion worth of loans based on technology assessment.
Chairman Shin praised the bank employees’ dedicated efforts and evaluated that there have been meaningful changes in the business practices of banks during the last 100 days. He compared the effect of technology finance as ‘killing three birds with one stone’ meaning that it benefits SMEs, banks, and the national economy all at once. Technology finance provides necessary funds to SMEs which have been neglected by financial institutions, allows banks to more effectively manage risks by enabling accurate estimation of default rates through technology credit assessment, and creates new growth engine for the national economy. Moreover, he added that accumulated data related to domestic companies’ technology information will become an invaluable national asset that can be utilized in reviewing government-level R&D projects and investment.
The government will offer wide range of benefits to banks with excellent technology finance performances. The FSC will accelerate its efforts to realize ‘Creative Finance’ by further facilitating technology finance. Chairman Shin Je-Yoon will pay regular visit to nationwide bank branches with great technology finance performances to praise their efforts.