The Korea Credit Guarantee Fund will provide 10 billion won ($7 million) in guarantees to regional cultural content companies in partnership with Busan Bank (005280.KS).
The fund said on the 6th that it had signed an agreement with Busan Bank to provide what it called productive financial support for K-content. The partnership was designed to help broadcasting, film and performing arts companies in the region raise funds and sustain growth, in line with the government's policy drive to channel funds into productive sectors of the real economy rather than speculative investment.
Busan Bank will contribute 500 million won, which the fund will use as the basis for a total of 10 billion won in joint guarantees. Eligible borrowers are companies operating in the cultural content industry, including those that plan, produce or commercialize content and those that make use of content intellectual property.
Companies using the joint guarantee program will receive full 100% guarantee coverage for three years. The fund will also cut guarantee fee rates by 0.5 percentage point to lower borrowing costs for those companies.
An official at the fund said the agreement is expected to offer practical help in securing funding and easing financing costs for K-content companies.
