The state-run Industrial Bank of Korea plans to expand its support for small and medium-sized firms this year that will include more funding for startups that have nothing but technologies, the bank's top executive said Monday.

"Providing liquidity to small and medium-sized enterprises is what IBK is tasked to do," IBK Chairwoman Kwon Seon-joo said.

To this end, the bank will expand its technology-based lending to 8 trillion won ($6.79 billion) this year, compared with 6 trillion won in 2015.

Unlike conventional loans that are usually backed by collateral, technology loans are based on intangible assets, such as technology, making them especially helpful to venture firms and other startup businesses with innovative technologies but no physical assets.

Since the type of lending was first introduced in July 2014, local lenders have provided 30.9 trillion won in technology loans, with IBK accounting for more than one-third, or 11.5 trillion won of the total, as of end-November.

The bank will also boost its direct investment in SMEs to 120 billion won this year from 100 billion won last year, while also expanding its investment through project financing, according to Kwon.

IBK will also expand its direct financing for new startups.

Under a joint program with the state-run Korea Credit Guarantee Fund, IBK will provide up to 17 trillion won in loans and credit guarantees over the next five years to some 5,000 new startups. (Yonhap)