Preparing Digital and Contactless 'Smart Bojeung' for the Post-Corona Era

Internet-Only Banks and Credit Guarantee Foundation Central Association Sign MOU to Introduce Digital and Contactless-Based Smart Guarantee System

On the 8th, Park Young-sun, Minister of SMEs and Startups, is delivering a greeting at the business agreement ceremony between Internet Specialized Banks and the Korea Credit Guarantee Fund held at the Korea Federation of SMEs.

[Asia Economy Reporter Kim Cheol-hyun] The Ministry of SMEs and Startups (Minister Park Young-sun, hereinafter referred to as the Ministry) announced on the 8th that the Korea Credit Guarantee Fund (Chairman Kim Byung-geun, hereinafter referred to as KODIT), delegated by three internet-only banks and 16 regional credit guarantee foundations (hereinafter regional credit foundations), signed a "business agreement for the introduction of digital and non-face-to-face based smart guarantees."

Through this agreement, the newly introduced "Smart Guarantee" will enable rapid and accurate guarantee screening through a digitalized system without paperwork, and allow the creation of non-face-to-face guarantee certificates and loan agreements using electronic signatures. Accordingly, it is expected that timely funding can be supplied to small business owners with "same-day application, same-day loan." Furthermore, internet-only banks can expand their business scope from existing personal loans to corporate loans, starting with small business loans through smart guarantees.

The main contents of this business agreement include ▲ joint development of smart guarantee and loan financial products, system operation, mutual information exchange, and network construction cooperation ▲ continuous operation of a smart guarantee task force (TF) composed of practical personnel from the Ministry-led internet-only banks and KODIT for agreement execution. Through the formation and operation of the smart guarantee TF, internet-only banks and KODIT will closely cooperate to share know-how on non-face-to-face contracts and credit evaluation, while the Ministry will continuously monitor the progress to launch the product as soon as possible.

At the signing ceremony, Minister Park Young-sun of the Ministry said, "Following the COVID-19 crisis, as the industrial environment is reorganized into a digital economy and the non-face-to-face economy rises, it is expected that regional credit foundations and internet-only banks will play a leading role in the digital and non-face-to-face economy through this agreement."

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