President Seoh Geun-woo of Korea Credit Guarantee Fund (KODIT) said on April 2 that he will change the guarantees extended to SMEs to be more diverse and for multiple periods, from just being a one-time guarantee. The change is intended to help the start-ups be able to manage their own funds and KODIT will help develop that capability, President Seoh said.
What Seoh meant was that KODIT will help start-ups to manage the funds they get early in their operations well with improved management capacities through advisory services provided by KODIT in such areas as accounting, tax and legal affairs.
KODIT will also provide financial support in the form of investments in the start-ups and securing loans if they are grown to a certain level, along with management consulting and accounting advices.
KODIT will also do what it can to help the once-failed firms to do business again. The fund plans to set up 25 outlets around the country to help the once failed firms restart their operations. KODIT has allocated some 60 billion won to that end.
KODIT, which moved its head office to Daegu at the end of last year, signed a cooperative agreement with Daegu Bank to run the E Cube start-up guarantee program under its strategy to seek out 100 start-ups worthy of cooperation with KODIT, Daegu City and Daegu Bank in the next three years.
Since its establishment in 1976, Korea Credit Guarantee Fund (KODIT) has continuously strived for the growth of SMEs and the national economy.
Over the years, KODIT has especially provided reliable support for the national economy during crises such as the Asian Financial Crisis in 1997 and global financial crisis in 2008.
The Korean economy is now in a period of another transition. The new paradigm of the Creative Economy will provide new growth initiatives to overcome the current economic downturn and high unemployment.
SMEs with immense inspiration, innovative ideas and challenges will be the driving force behind the Creative Economy. KODIT will proceed with initiatives to increase SMEs’ competitive strength.
The main purpose of the credit guarantee services is to enable promising Small and Medium-sized Enterprises (SMEs) without enough collateral to obtain funds and make headway in the financial or business transaction.
In an attempt to meet SMEs’ demand for financing service, the Korea Credit Guarantee Fund provides enterprises with credit guarantee services for the repayment of liabilities assumed by business enterprises in transactions with other companies or institutions.
By doing so, the credit guarantee services facilitate the financing of SMEs through credit guarantees and stimulate sound credit transactions through the efficient management of credit information.
Credit guarantee services involve a series of interactions among three parties: the guarantor (KODIT), the debtor (enterprises) and the creditor (financial institutions). If the debtor defaults, KODIT pays the guarantee obligation to financial institutions in place of the debtor.
_서근우 01.jpg)
_KODIT 서근우.jpg)
