Woori Bank and state-backed Korea Technology Finance Corporation (KIBO) signed an agreement on August 26 to supply KRW1 trillion ($722mn) in loans to technology companies, according to Finance BigGo.

The joint deal targets small and medium-sized enterprises (SMEs) and venture firms in semiconductors, physical artificial intelligence (AI), and AI data centres. Korea's government previously designated these three sectors as the core pillars of its "Great Leap Forward 3 Mega Projects" initiative.

Under the "K-SPARK South Korea Great Leap Forward Productive Financing Support Business Agreement", Woori Bank will contribute special endowment funds and guarantee fee subsidies to KIBO. KIBO will then use these resources to underwrite KRW1 trillion in targeted corporate loans.

To expand capital access for early-stage firms lacking collateral, both institutions agreed to raise guarantee ratios and cut guarantee fee rates by 1pp. The program also prioritises funding for enterprises operating outside the Seoul metropolitan area to encourage balanced regional growth.

"We hope this agreement provides practical financing assistance for companies in semiconductors, physical AI, and AI data centres," said Woori Bank Chief Executive Jeong Jin-wan on August 26. "We will work closely with KIBO to expand productive financing for SMEs driving future growth engines."

The partnership establishes a direct public-private pipeline to inject liquidity into strategic tech sectors. By subsidising guarantee fees and absorbing credit risks, the state and commercial lenders aim to secure South Korea's supply chains and improve global competitiveness against rising international rivals.