100 Billion Loan Guarantee Provided to Companies Introducing 'Smart Service'

Ministry of SMEs and Startups, SGI Seoul Guarantee, and MainBiz Association Sign Business Agreement
Seoul Guarantee Selected as the 18th 'Caring Company'

Source=Ministry of SMEs and Startups

[Asia Economy Reporter Kim Daeseop] The Ministry of SMEs and Startups announced on the 28th that it signed a business agreement with SGI Seoul Guarantee and the Korea Management Innovation Small and Medium Business Association (MainBiz Association) to support the 'Activation of the Digital New Deal Economy and Innovative Growth.'

The signing ceremony was held at the SGI Seoul Guarantee headquarters in Jongno, Seoul. SGI Seoul Guarantee pledged support and collaboration for the activation of the Digital New Deal economy and innovative growth, and was selected as the 18th 'Caring Company' that realizes the values of coexistence and mutual growth.

Under this agreement, SGI Seoul Guarantee will supply a new loan guarantee product for companies adopting smart services under the Ministry of SMEs and Startups with a limit of 10 billion KRW this year and plans to expand support to additionally selected companies next year. For companies that have completed implementation, the guarantee limit will be increased up to 3 billion KRW, and the performance guarantee insurance premium will be reduced by 10%. Through this, a total guarantee of 65 billion KRW will be provided for the Digital New Deal project.

The types of smart services include chatbots, non-face-to-face (untact) smart work, logistics management, customer management, online remote medical care, online education, and social problem-solving applications.

In particular, for innovative small and medium enterprises related to the Digital New Deal recommended by the MainBiz Association, the total guarantee limit per company will be expanded by 1.8595 trillion KRW (guarantee expansion of 500 million to 1 billion KRW depending on credit rating), and a special supply of 623.1 billion KRW for permits and licenses guarantees will be implemented.

Additionally, the untact mobile education platform SGI Edu Partner will be established to provide educational services free of charge. Support will be provided for SGI Seoul Guarantee Insurance’s training facilities, sponsorship of CEO education projects by the MainBiz Association, and credit management consulting.

The 'Caring Companies' selected by the Ministry of SMEs and Startups refer to voluntarily cooperative companies that share strengths such as infrastructure, mutual growth programs, and know-how owned by companies and institutions not only with traditional first-tier partners but also with small and medium enterprises, small business owners, and self-employed partners and non-trading companies.

Since this year, the Ministry of SMEs and Startups has been supporting service innovation for small and medium enterprises using advanced information and communication technology (ICT), big data, artificial intelligence (AI), etc., to promote a rapid transition to a digital and untact economy by providing 9.3 billion KRW (for 150 companies) for corporate innovation, online economy, and public sector smart service solution construction (up to 50%, maximum 60 million KRW).

Minister Park Young-sun of the Ministry of SMEs and Startups said, "The policy goal of the Ministry this year is 'Great Transition to the Digital Economy, Smart Korea.' I hope that the financial and educational infrastructure support and cooperation through this agreement will become a model case of mutual growth for the transition and change to the digital economy." She added, "I hope that the culture of mutual growth and cooperation will continue to expand despite the difficult situation caused by COVID-19, and the Ministry will work even harder for the values of coexistence and mutual growth."

Kim Sang-taek, CEO of SGI Seoul Guarantee, stated, "It is very meaningful to be able to contribute to the innovative growth of small and medium enterprises and the Digital New Deal project through this agreement."

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