President Hwang Rok of Korea Credit Guarantee Fund(Kodit) poses with the heads of the five technology universities with all of them holding the copy of the agreements they signed on May 10 to help launch startups and also create jobs in Korea. (Photo: Kodit)

Korea Credit Guarantee Fund (Kodit) will join forces with the University of Science and Technology Properties to spur the development of startups by providing 6 billion won worth of loans and consulting services in the hope that it will create opportunities among talented college graduates to launch startups.
Kodit signed agreements with five such universities including KAIST, POSTECH GIST, DGIST, and UNIST to pave the way for the establishments of the startups based on knowledge and technology designed to create jobs through the industrial cooperation.
The agreements are also designed to commercialize the outstanding research projects made at those universities by providing financial and non-financial support and each university will hold consultation sessions for startups to conclude cooperative ties ups. The startups will be charged 0.3 percent from the usual credit guarantee fees and get 90 percent of their guarantees special benefits, including the entitlements to financial and non-financial services and consultations.
Kodit President Hwang Rok said the agreements will form a base for outstanding technologies further developed at reformed startups paving the way for the creation of good quality jobs through the flourishing economy.
Despite the integral role of SME (Small and Medium Enterprises) in Korean economy, most SMEs were in financially difficult positions with circulation of the cash flow. Accordingly, the Korean government has been investing in funds to boost these SMEs’ economic activities. However, the evaluation of governmental funds’ performance has not been carried out effectively.
In order to manage such funds effectively, comprehensive evaluation procedures are necessary to be performed and the resulting feedback information be provided to better select firms eligible for the future governmental funds.
By analyzing the failure factors of firms, we identify factors determining the funds efficiency in the performance and its impacts on survival, performance and R&D investment of the firms. Most of the previous studies dealing with the evaluation of governmental investments have considered the output performances only.
For instance, the report from the SMBA (Small and Medium Business Administration in Korea, 2002) has shown the performance evaluation using an AHP (Analytical Hierarchy Process).
With the same methodology, Yurdakula and Tansel proposed a credit evaluation model for the banks to determine the credibility of the manufacturing firms in an effort to measure their long-term profitability. Frei and Harker used AHP to measure the performance of the aggregate process of the banking industry.
But these studies have not considered the effects of input factors. Some other studies have used BSC (Balanced Score Card) in order to evaluate the performance of the investments or projects. Others used regression analysis and matching methods to evaluate the effects of credit guarantee on survival and performance of 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 in place of the debtor. firms.