Korea Credit Guarantee Fund and KOTRA jointly sponsor a one-on-one session designed to help SMEs facing such difficulties as financing, technology development and overseas market exploration at the Garden Hotel in Seoul on April 19. (Photos: Kodit)

Korea Credit Guarantee Fund (Kodit) officially approved its 2018 Management Plan at a meeting of its regional managers all across the country. 

The meeting was held at its head office in Daegu on Feb. 8, where executives vowed to strengthen financial policy support to SMEs and realize reformed growth and social values. The plan also spelled out Kodit credit guarantee issue limit for this year would total around 45 trillion won, up 2 trillion won from last year while 5.1 trillion won worth of credit guarantees for the asset backed securities will be issued for this year to help SMEs to secure financial support easier so that they would be able to manage stable growth.

Kodit will buy the assets of SMEs in financial trouble worth as much as 20 trillion won this year, up 500 billion won from the previous year, to prevent chain defaults and strengthen its public role.

The official plan for 2018 include Kodit’s credit guarantees this year allocated to the areas that will create jobs under the 4th Industrial Revolution, one of the core tasks for the government. Kodit will issue as much as 15 trillion won worth of credit guarantees to the start-ups, 11 trillion won for export firms, 8.5 trillion won for the business firms related to the 4th Industrial Revolution and 4 trillion won to the business firms to create jobs to spur economic growth by strengthening its foundation.

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 smooth headway in the financial or business transaction.

In an attempt to meet SMEs' demand for financing service, 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 the credit guarantees and stimulate the sound credit transaction 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 for the debtors.

KODIT provides management consulting services to SMEs in an attempt to enhance their competitiveness and productivity. These services consist of training programs, management consulting and publications. SMEs are generally said to have been the underdogs compared to large enterprises due to their weaknesses in working capital, manpower, technology and know-how.

By providing various training programs and management consulting services, KODIT expects SMEs to acquire advanced administration and management skills and to construct an effective network with their customers

Consulting

KODIT’s management consulting services classified into direct and consignment consulting - direct consulting with KODIT’s own consulting model while external consulting on consignment basis.

Training Programs

Training programs are offered in both ways: on-line and off-line. KODIT is running on-line training programs that provide useful management information through the Internet. Training programs include tax accounting courses, account receivables management courses, accounting courses, etc.

Publications

KODIT publishes the monthly KODIT Newsletter and the Management Information leaflet. These publications seek to introduce updated managerial and technical skills of SMEs.