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INNOBIZ LOAN &
KOTEC’s Technology Rating System (KTRS)
Contents
1. Overview of INNO-BIZ LOAN
2. Technology Evaluation System
3. Technology Rating System(KTRS)
2
SYSTEM OF INNOBIZ LOAN
③
KOTEC
⑤
⑥
④
②
①
KOOKMIN BANK
1.
2.
3.
4.
5.
6.
Loan Application
Request Technology Valuation
Due Diligence(Technology Valuation)
Issue Technology Appraisal Certificate(TAC)
Issue Credit-Based Loan
Gov. Subsidy for SME’s Technology Appraisal Fee
3
The Definition of INNOBIZ
 INNOBIZ : A compound word of Innovation & Business
(Tech Competitiveness)
 Select Excellent Businesses with Technological
Competitiveness & Future Growth
 Potential and Promote them to be Internationally
Competent Enterprises: Financing
 Technological, & Marketing Support
 Many Innovative companies which have just finished
R&D stage has the high probability to die off due to the
vulnerability to cash flow => That’s why we are!
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Benefit of INNOBIZ LOAN
Financial Benefit
• Higher Credit Line
• Lowe Interest Rate (0.5%-1%)
• No Transaction Costs(Money Transfer, Money Exchange)
Introduction to Government Support
• Priority Position in the Government Projection Fund
Selection
• Tax Credit (Break)
Other Support (in tandem with KOTEC)
• Introducing promising buyers
• Business Consulting Services
• M&A, Technology Transfer Service
5
Necessity of Technology Evaluation
 Global economy is led by corporations with intangible
assets represented by IP(Intellectual Property)
 High-growth firms are more R&D-intensive
 The supporting effect of innovative SMEs is better
than that of ordinary SMEs
 Need a measure to find innovative SMEs with technology
 Information asymmetry between financial institutions
and borrowing SMEs
 Lacks of tangible collaterals in early stage SMEs
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1. Overview of Technology Evaluation
What’s Technology Evaluation ?
 Technology Evaluation is a subjective activity
 Technology is neither visible nor tangible
 Compared to the evaluation of beauty
 Technology Evaluation needs some understanding
of the technology
 There are a number of traps and pitfalls that
technology manager may encounter
 The value of technology is also affected by
various non-technological factors
 Technology is traded in supplier’s market
 Hard to reach balanced price through market mechanism
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Korea Technology Finance
Corporation(KOTEC)
 Government-Funded Institution Under the Special Act in
Korea (Established in 1989)
 Leading the settlement & development of “Technology
Financing System” to Uplift National Economy’s
Dynamics
 Playing a role as “the Core Infra-Structure of
Government’s Policy for Conversion into Innovation-led
Industrial Structures”
 Supplying Policy Financing to “Bridge a gap of
incomplete Financial Markets” ; Information Asymmetry
in Tech SMEs
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2. Kibo Technology Rating System
KTRS vs. Credit Rating System
 KTRS(KOTEC’s Technology Rating System)
 In Technology Level, technology innovation and business
possibility are measured
 In Risk Level, Risk of technology is computed
only from technology-based input factors(not financial terms)
 KTRS Rating is the Output of Matrix combination of
Technology Level and Risk Level
 Credit Rating System
 Forecast corporation’s insolvency
 Use financial model(Credit and debt redemption capability)
and non-financial model(CEOs and financial transaction
soundness)
 Financial model is more dominant than non-financial model
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2. Kibo Technology Rating System
Technology Level in KTRS
Input Variables
45 Indicator Data
Scoring
Model
Technology
Level
 Scoring Model from AHP analysis
• Using expert-advised questionnaires, give weighted value to questions
• Give different weighted scores by industries
• Rate business success prospects of the technology in terms of its technological
ability and business prospects
The Analytic Hierarchy Process (AHP) is a structured technique for dealing with complex
decisions. Rather than prescribing a "correct" decision, the AHP helps the decision makers find the
one that best suits their needs and their understanding of the problem.
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2. Kibo Technology Rating System
Risk Level in KTRS
Input Variables
• Economic environment variable
Logit Model
Risk Level
• Corporate environment variable
• 45 rating indicators data
 Risk Level from Regression analysis
• Analyzed 11,000 data (Tech. Appraisal Guarantee data) collected since ’99
using statistical techniques
• Unlike general credit rating models based on financial variables,
this Logit model is designed to measure technology-related risks
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2. Kibo Technology Rating System
Detailed Indicators in KTRS
Management Module
 Knowledge management
 Technical experience
 Management ability
 Fund supply
 Human resource
Market Module
 Market potential
 Market characteristics
 Product competitiveness
Technology Module
 Environment of technology
development
 Output of technology
development (patents, etc)
 Technology superiority
 Technology commercialization
Business & Profit prospect
Module
 Sales schedule
 Amount of sales
 Profitability
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It’s not fair !
Should SMEs in developing countries
depend on low labor costs?
We are trying to transform economy from
Labor-Intensive to Technology-Intensive
in developing countries...
This is the spirit of KOTEC and Kookmin
Bank