Korea Development Bank (KDB) will run a new financial aid program of 2.5 trillion won ($2.3 billion) for small and mid-sized companies to foster their overseas growth over the next five years.

The state-lender announced Monday that it will introduce ‘KDB Global Challengers 200’ program to help the country’s small and mid-sized companies expand their global presence. Under the special financial aid program, 200 mid-sized companies and small-sized firms with strong growth potential will be selected and given special financial aid worth 2.5 trillion won and other managerial supports such as consultation service on mergers and acquisitions from this year until 2022.

The bank will kick off the program by selecting 40 companies this year. It will receive applications until May.

A KDB official explained the new program focuses on nurturing small and mid-sized companies with high growth potential especially in the fields related to future technologies such as bioengineering. It expects the program would help creating nearly 10,000 new jobs.

The small and mid-sized companies under the bank’s special interest are those that have been in business for at least seven years and making 30 billion won or more in sales annually.

The bank has divided the program into three different groups to support the companies better based on the size and nature of each business type.

The support program includes financial aids on research and development projects and facilities expansion as well as direct overseas investment. It will also provide prime-rate loans to lower their financial burden.

By Lee Seung-yoon and Cho Jeehyun

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