Chairman Hwang Rok of the Korea Credit Guarantee Fund (KODIT) said on Feb. 27 that he will run KODIT in such a way as to create jobs by extending financial guarantees to promising startups to help usher in the 4th Industrial Revolution. KODIT will use a new platform to find qualified startups.
He told reporters at a media conference at Garden Hotel in Mapo Ward, Seoul, that the most important factor is providing support to startups so they can exercise their capacities in full so they can create jobs with continued growth in their operations. “KODIT is ready to extend its one-stop support to those startups in every phase of their operations, including M&As and exit strategies,” the KODIT chairman said.
KODIT established the Start-Up Growth Department under the wing of its 4.0 Start-Up Division to streamline support for startup businesses, incorporating responsibilities including investment, insurance and consultation, in addition to traditional roles involving the insurance of credit guarantees.
The fund will assign 37 professional consultants in the newly created startup department. KODIT has also decided to include its Start-Up Nest in the new platform to be introduced later in the year, which is in line with its plan to find 100 startups.
KODIT aims to find 200 qualified startups next year and 300 in the following year to achieve its mission to help create new jobs around the country by facilitating the success of startups.
KODIT, in the meantime, has decided to issue a credit guarantee worth 400 billion won to support the SOC liquidity bond in connection with the Busan-Gimhae Electric Railroad Line Project, the company said on March 16. The Busan-Gimhae Light Electric Railroad Line, in operation since September 2011, stretches for 23.23 km and is a BOT-type light electric line.
Busan Metropolitan City and the Gimhae City, the principal operators of the light electric rail line, projecte some 230,000 people would use the line daily in the beginning, but the figures fell short with only around 50,000 people using the light electric line. The two cities have been trying to replace the current MRG-type operation system for a SCS-system to hold down the financial burden to them growing larger every year.
KODIT’s issuance of 400 billion won in guarantees will be financed under the SOC-ARS subscription system, which is financed at lower interest rates, lightening the financial burden on the two municipal authorities. That is expected to improve the operating conditions for the Busan-Gimhae Electric Railroad Line
From 2011 to 2012, Hwang served as vice president of now defunct Woori Finance Holdings and took the helm of Woori Financial (now KB Capital) as CEO from 2013 to 2014. Since 2014, he has been serving as an associate professor at the university's Business Leadership Convergence Studies department.
The FSC said in a statement that "Hwang has expertise and experiences to lead KODIT to serve its key roles." "During his tenure at Woori Finance Holdings, he showed strong leadership and drive which led to a solid performance."
Korea Credit Guarantee Fund is a public financial institution established in June 1976 under the provisions of the KODIT Act.
As stipulated in Article 1 of the Act, the main purpose of the fund is to lead a balanced development of the economy by extending credit guarantees for the liabilities of promising small- and medium-sized enterprises (SMEs) lacking tangible collateral.
In an attempt to meet SMEs' demand for financing services, the state-run agency provides enterprises with credit guarantee services for the repayment of liabilities assumed by business enterprises in transactions with other companies or institutions.
The credit guarantee services by the agency are to facilitate the financing of SMEs through the credit guarantees and stimulate the sound credit transaction through the efficient management of credit information.
KODIT's capital funds are the financial resources prerequisite for KODIT to maintain its public trust, to provide credit guarantee, to make payment under guarantees and to earn revenue from managing surplus capital funds. The main sources of the capital funds are contributions from the government, financial institutions and enterprises.
A view of the building in Daegu where KODIT is located.(Photos: KODIT)