According to Yonhap News,

(SEOUL = Yonhap News) The Small and Medium Business Administration (SMBA) and eight public institutions – Large & Small Business Cooperation Foundation, five public energy companies and three large companies – hosted an agreement ceremony for a private-public sector joint R&D fund worth about KRW 21.8 billion last week at the Palace Hotel in Seoul.

The agreement aims to raise funds so that small- and medium-sized enterprises (SMEs) can achieve technological independence and localization.

Companies participating in the agreement are the Korea Water Resources Corporation, Korea Gas Corporation, Korea National Oil Corporation, Incheon Port Authority, Autech Carrier Corp., Hyundai Home Shopping and Korea Delphi Corp.

The participation of 10 medium-sized firms, including Autech Carrier Corp. and Korea Delphi Corp., is expected to promote win-win growth between various levels of cooperative firms.

The government and investment companies will each invest KRW 10.9 billion for 3 years to raise the fund.

Autech Carrier Corp. (KRW 3 billion), Korea Water Resources Corporation (KRW 2.6 billion), Korea Gas Corporation (KRW 2.5 billion), Korea National Oil Corporation (KRW 1 billion), Hyundai Home Shopping (KRW 0.9 billion), Korea Delphi Corp. (KRW 0.5 billion) and the Incheon Port Authority (KRW 0.4 billion) will also participate in the investment.

The fund will provide financial support for the development and localization of new technology in the energy, harbor and automobile industries.

SMEs participating in the development of new technology will be able to borrow up to KRW 1 billion per project without interest or collateral. The SMBA expects this will enable companies to secure their market position and focus on technology development.

The SMBA also announced that it has raised a KRW 220 billion fund with 37 government institutions and companies and provided about 450 SMEs with an estimated KRW 220 billion since 2009.