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FSC head says start-ups need funds

Published: 07 Aug. 2014, 21:51

FSC Chairman Shin Je-yoon speaks to executives of state-run banks and institutions yesterday in Yeouido. Provided by FSC

Shin Je-yoon, chairman of the Financial Services Commission, pledged to provide major incentives for financial institutions that take the lead in supporting technology-related start-ups.

Shin explained the government’s ambition to make what he called “technology finance” a cornerstone of the Park Geun-hye administration’s creative economy initiative at a meeting with executives of state-run banks and institutions held at the Korea Finance Corporation in Yeouido yesterday. Technology finance refers to banks giving more loans to tech start-ups.

“For banks and institutions that voluntarily offer loans to tech companies, the government will provide unprecedented incentives,” Shin said, without explaining what the incentives would be.

The chairman said that the credit loan system will be the base of the nation’s technology finance.

Shin said the FSC would expand the credit loan products at Korea Development Bank and Industrial Bank of Korea and increase the number of engineers in the financial industry.

Those two banks are designated as Technology Credit Bureaus (TCBs) by the government to evaluate start-ups’ technology and give financial help.

“Local start-ups feel that it’s difficult for them to get sufficient financial support even though they have outstanding technologies,” Shin said. “Probably that’s because of a tendency by financial institutions to have conservative evaluation standards, or sometimes they avoid evaluation.”

The chairman said it is crucial for banks to have employees who specialize in finance and engineering in order to give more loans to start-ups.

The FSC will monitor the provision of financial support at each bank and TCB, the chairman said, adding that the commission will cooperate with the Ministry of Science, ICT and Future Planning, the Ministry of Trade, Industry and Energy and the Korea Intellectual Property Office to encourage technology-focused investment.

BY SONG SU-HYUN [[email protected]]