Korea Food Industry Association, K-Sure, and NH Bank Sign Financial Support Agreement for K-Food Tech Companies' Global Expansion

A significant financial support agreement has been inked to fuel the global expansion of K-food, focusing on nurturing innovative food technology companies. The Korea Food Industry Association, Korea Trade Insurance Corporation (K-Sure), and NH Bank have joined forces to create a financial support system aimed at easing the funding challenges faced by these burgeoning businesses.

The collaboration establishes a three-step process. The Food Industry Association will identify food tech members in need of funding and recommend them to NH Bank. Subsequently, NH Bank will select eligible companies and refer them to K-Sure for technical guarantees. This structured approach is designed to streamline the funding process and ensure that promising food tech ventures receive the necessary capital.

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Through this agreement, we expect that food tech companies with excellent technological capabilities will be able to reduce their funding burdens and focus on technological development and global market entry.

The initiative boasts a substantial fund of 177 billion won (approximately $127 million). This includes 70 billion won for special cooperation guarantees, offering 100% guarantee coverage for working capital with a reduced guarantee fee of 0.2% for three years. An additional 107 billion won is allocated for cooperation guarantees that support both working and facility capital, with a 0.7% reduction in guarantee fees for two years. This financial backing is crucial for companies developing new products and technologies, enabling them to concentrate on innovation and international market entry rather than solely on financial hurdles.

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We will continue to expand cooperation with related organizations to strengthen the competitiveness of the K-food industry.