S. Korea to provide 40 tln won to promising companies

SEOUL, Feb. 17 (Yonhap) -- South Korea's financial authorities said Monday that they will provide up to 40 trillion won (US$34 billion) in financial support to promising companies in the latest move to boost innovative sectors.

The Financial Services Commission said that the government plans to select more than 1,000 innovative companies for a package of financial assistance tailored for each company for three years.

The move comes as South Korea has been pushing to foster artificial intelligence, fifth-generation network services, the Internet of Things and other innovative sectors as its new growth engines amid slowing exports and investment.

The proposed assistance program is composed of investments worth 15 trillion won, loans worth 15 trillion won and guarantees of 10 trillion won, according to the commission.

Separately, South Korea will help another 30 companies with high growth prospects attract large-scale investments from both South Korean and foreign venture capital firms.

Small and medium-sized enterprises account for 99 percent of local businesses in terms of numbers, but they have relative difficulty in acquiring loans from financial institutions compared with conglomerates.

entropy@yna.co.kr

(END)