Unsecured Guarantee Support for Low-Credit Rebound Companies

Up to 500 Million KRW for 2 Years for Re-Startup Funds, Re-Challenge Success Package, and Business Transformation Companies

[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 13th that it has signed a 'Re-advancement Enterprise Guarantee Support Business Agreement' with Seoul Guarantee Insurance (CEO Yoo Kwang-yeol) to support normal transactions for re-advancement enterprises with low credit.

This agreement expands the scope of support from the 'Re-challenge Enterprise Guarantee Support Business Agreement' signed in 2015 and was conducted non-face-to-face due to strengthened social distancing measures caused by the recent COVID-19 pandemic.

Under the existing agreement, the Ministry and Seoul Guarantee Insurance issued performance guarantees necessary for supply contracts without collateral on preferential terms (up to 5 billion KRW per company for 2 years) only to companies that received re-startup funds. However, this time, the support target has been expanded to all re-advancement enterprises, including graduates of the Challenge Success Package and companies supported by business conversion funds. The preferential period applies for up to 2 years from the selection date.

Additionally, through this agreement, Seoul Guarantee Insurance plans to support services to strengthen the innovation capabilities of SMEs. For two years, it will provide educational services for talent development in SMEs through Seoul Guarantee Insurance's non-face-to-face mobile education platform, 'SGI Edu Partner.' SGI Edu Partner is a service established in partnership with Hunet, an education specialist company, providing about 10,000 educational contents free of charge to SME employees who lack educational opportunities, including job training, language, liberal arts, and mandatory education.

Credit management services to improve the management structure of SMEs can also be received free of charge. The credit management service allows checking and monitoring of client company information and credit information, and provides management consulting reports with business improvement plans based on industry trends and competitor analysis.

To enhance the effectiveness of this expanded agreement, preferential guarantees will be temporarily supported until this year for companies that succeeded in re-startup through the Re-challenge Success Package from 2015 to 2019 and companies supported by business conversion funds. As a result, about 2,400 companies will be included in the support target, and it is expected that guarantees worth up to 1.1 trillion KRW can be supplied.

Kang Ki-seong, Director of the Re-advancement Policy Division at the Ministry, said, "Since the introduction of the re-startup enterprise contract performance guarantee insurance support in 2015, it has steadily achieved results by supporting 141.8 billion KRW in unsecured guarantees to 1,054 companies," adding, "through this business agreement, we will be able to provide more help to companies hoping for re-advancement despite the difficulties caused by COVID-19."

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