Chairman Hwang Rok of Korea Credit Guarantee Fund.

Korea Credit Guarantee Fund (Kodit) won the Presidential Citation for its contribution to financial reforms and the protection of financial consumers at a ceremony for the 2017 Financial Day held on Oct. 31 in Yeouido, Seoul. The Financial Day is observed on last Tuesday in October every year to award individuals and businesses who made exemplary contributions to the development of the financial industry, especially in the areas of financial reform, financing for the general public, and savings.

Kodit is considered to have led the financial industry so far by setting up a platform for the development of startups, introducing the “first penguin” system, the waver of joint guarantees for business founders and other new financial products and services. It does all this to spread a challenging startup culture and strengthen its support of the export and service sectors with tailor-made products. They create jobs and lead the development of the financial industry reform through effective financial policy implementation.

Kodit has also been credited with preparing the total and fusion solutions related to guarantees, P-CBO, investment, IPO and others, while intensifying its support to fintech and smart fusion to lead in financial reform.

Kodit has been lauded for not neglecting its support to financial issues for women, the handicapped, business firms that need social considerations, and businesses that failed despite their best efforts.

Kodit, at the same time, has been given credit for leading moves to protect financial consumers by making financial processes simple for consumers including interest rates  monitoring and the papers required to be submitted.

Kodit officials said they will continue to make contributions to the economic recovery and the job creation through the implementation of effective financial policies, commenting on Kodit winning the award. KODIT employs the Enterprise Risk Management (ERM) system, integrating credit risk management, liquidity risk management and operational risk management, which were carried out respectively in the past. With this integrated risk management, KODIT can efficiently cope with the changing business circumstances arising from the introduction of Basel II, and effectively reinforce its financial foundation for self-sustainability.

Liquidity risk management measures and prepares the appropriate amount of cash flows for subrogation and normal business operations. This risk management considers leverage ratios, outstanding guarantees, and contribution cash flow with the help of statistical methods and IT technology. 

A view of the Kodit Building in Daegu. (Photo:Kodit)