KB Kookmin Bank partners with South Korea's credit guarantee institutions to provide 200 billion won in loans to young technology start-ups, with three-year guarantee-fee waivers.
South Korea’s KB Kookmin Bank has partnered with the Korea Credit Guarantee Fund (KODIT) and the Korea Technology Finance Corporation (KOTEC) to provide approximately 200 billion won (US$149 million) in guaranteed loans to technology start-ups led by young entrepreneurs. The initiative, called the Youth Startup Hope Ladder Financial Support Programme, aims to ease early-stage financing challenges by improving access to credit and reducing borrowing-related costs.
The bank announced on November 5, 2026, that it had signed agreements with the two guarantee institutions to implement the programme. Under the arrangement, KB Kookmin Bank will contribute a total of 11.8 billion won (approximately US$8.8 million) to support loan guarantees and cover guarantee fees. The contribution will be divided equally between the two institutions, with each receiving 5.9 billion won.
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Each institution will receive a special contribution of 5 billion won and 900 million won for guarantee-fee support. Using these funds, the institutions will provide guarantees that enable KB Kookmin Bank to extend loans worth approximately 200 billion won to eligible businesses. Individual start-ups can access loans of up to 300 million won (around US$220,000).
The programme targets technology-based start-ups whose actual managers are between 17 and 39 years old and whose businesses have been established within the previous seven years. Applicants must also satisfy the credit guarantee requirements of either KODIT or KOTEC. The eligibility framework is intended to support young entrepreneurs who may face difficulties obtaining conventional bank financing because of limited operating histories, insufficient collateral or a lack of established credit records.
Selected businesses will receive a preferential guarantee covering 100% of the loan amount for three years. The guarantee fee, fixed at an annual rate of 0.3%, will also be fully waived during the same period. These measures are designed to reduce financing expenses and make capital more accessible to businesses developing new technologies and commercial solutions.
KOTEC said the agreement would help strengthen the youth start-up ecosystem by supporting entrepreneurs developing innovative products and exploring new markets. A representative of KB Kookmin Bank said the initiative was intended to provide additional financing opportunities for young companies facing difficulties in raising funds during their early stages.
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The programme comes amid growing competition among South Korean banks to expand financial support for youth-led businesses. Hana Bank has introduced a similar guaranteed lending facility targeting young entrepreneurs, while Woori Bank is providing approximately 100 billion won in guaranteed loans through an agreement with KOTEC.
The initiative reflects efforts by South Korea's financial institutions to improve funding access for emerging technology businesses and encourage entrepreneurship through credit guarantees and reduced financing costs.