Shinbo to Supply 49.3 Trillion Won in General Guarantees This Year... Supporting SMEs Amid Economic Uncertainty

New Loan Guarantee Plan for 2020 Announced
General Guarantees Supply of 49.3 Trillion KRW... Largest Scale in the Last 3 Years

[Asia Economy Reporter Kwon Haeyoung] The Korea Credit Guarantee Fund (KODIT) will operate its total general guarantees at 49.3 trillion won this year, an increase of 3.3 trillion won compared to the previous year. To actively respond to economic uncertainties and enhance economic vitality, the total amount of general guarantees has been expanded at the largest scale in the past three years.

KODIT announced on the 12th that it held the '2020 Business Strategy Meeting' and finalized the major business promotion plan for 2020, focusing on boosting economic vitality and strengthening innovation growth engines.

Additionally, KODIT plans to supply 2.4 trillion won in securitization company guarantees to facilitate smooth financing and stable growth for small and medium-sized enterprises (SMEs). It will also strengthen its role as a management safety net by underwriting 20 trillion won in credit insurance to prevent chain bankruptcies among SMEs.

KODIT will also expand guarantee supply in key policy sectors. This year, it plans to provide a total of 46 trillion won in guarantees, including 17 trillion won for startup companies, 12 trillion won for export companies, 3 trillion won for core industries such as automobile, shipbuilding, steel, chemical, semiconductor, and display, 9.5 trillion won for companies related to the Fourth Industrial Revolution, and 4.5 trillion won for companies creating and maintaining employment. This represents an increase of 1 trillion won compared to the previous year.

KODIT plans to focus its institutional capabilities this year to produce tangible results that SMEs and young entrepreneurs can feel.

First, it will advance the support system for innovative startups to nurture unicorn companies and establish 'Mapo Innovation Town, Front1,' the largest startup space in Korea for one-stop support of young startups, to systematically discover and foster young entrepreneurs. It will also build a 'Commercial Credit Index' that combines commercial transaction payment information with dynamic corporate information. Furthermore, it will establish dedicated organizations for technology evaluation and cultural content, and expand support for technology innovation companies and cultural content companies.

Yoon Daehee, Chairman of KODIT, said, "In a low-growth trend, the Fourth Industrial Revolution is a golden opportunity," adding, "KODIT plans to take the lead in recovering the fundamentals and enhancing the dynamism of the Korean economy by supporting both core industries and new industries simultaneously."

This content was produced with the assistance of AI translation services.