Kibo's Support Performance for Job-Creating Companies' Preferential Guarantees is 'Outstanding'

Growth Potential 3 Times and Profitability Over 1.4 Times Compared to Typical SMEs

[Asia Economy Reporter Kim Cheol-hyun] The Korea Technology Finance Corporation (Chairman Jung Yoon-mo, hereinafter Kibo) announced on the 14th that an analysis of the performance of the 'Job Creation Companies' guarantee support showed that these companies create higher-quality jobs and have better management performance compared to general small and medium-sized enterprises (SMEs).

The 'Job Creation Companies Preferential Guarantee' is Kibo's representative support program for job creation companies introduced in January 2011. It selects companies with significant employment creation effects or high relevance to job creation and provides preferential support such as ▲relaxed credit review ▲preferential approval authority ▲guarantee fee reduction (0.2 percentage points).

According to Kibo's comparison of the management performance of job creation companies with general SMEs, growth indicators including sales growth rate and total asset growth rate were about three times higher, and profitability indicators including operating profit margin and pre-tax net profit margin were about 1.4 times higher. Additionally, job creation companies created a total of 5,100 new jobs within two years after receiving guarantee support, indicating that public guarantee support for job creation companies significantly contributes to the creation of quality jobs.

Based on these results, Kibo decided to strengthen policy-linked support and expand assistance by adding companies benefiting from employment incentives and domestic return companies as job creation companies. According to this system improvement, preferential measures will be applied such as ▲pre-approval of up to KRW 50 million per person (up to KRW 500 million per company) for companies planning to hire two or more people within one year after guarantee support ▲additional limits of KRW 30 million to 50 million per new hire (up to KRW 500 million per company) ▲preferential guarantee ratio for companies with excellent quality job evaluations (85% → 90%) ▲expanded guarantee fee reduction benefits (0.2 percentage points → 0.4 percentage points).

Chairman Jung Yoon-mo of Kibo stated, "Kibo has set job creation as a major strategic goal and focuses on preferential support and expanding guarantee support for job creation companies, providing preferential guarantees worth KRW 5 trillion annually to about 12,000 companies." He added, "Through this analysis, it was confirmed that the support performance of the representative job creation support program, the Job Creation Companies Preferential Guarantee, is excellent. Going forward, we will strengthen customized support systems according to changes in the employment environment and lead efforts to contribute to SME job creation and employment stability through system improvements."

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