Korail Provides Special Support for Advance Payment Guarantee Fees in SME Contracts

Korea Railroad Corporation (KORAIL) announced on the 13th that it will provide special support for a portion of the 'advance payment guarantee fee' incurred in contracts with small and medium-sized enterprises (SMEs).

The special support is intended to alleviate the management burden of partner companies. The total budget prepared for this is 300 million KRW, and the support targets are SMEs that have applied for and received advance payments from KORAIL.

KORAIL plans to support 75% of the guarantee insurance certificate issuance fee for small enterprises and 50% for medium enterprises when partner companies apply for contract advance payments.

Currently, KORAIL pays advance payments up to 80% of the contract amount to companies that have signed contracts for goods, construction, and services. With the special support, additional costs incurred when applying for advance payments will be reduced by up to 5 million KRW per company.

Details such as the application method for receiving special support can be found on the KORAIL corporate website or through the electronic procurement system.

Park Young-sook, Head of KORAIL’s Finance and Management Office, said, “We hope this special support will provide practical help to SMEs experiencing financial difficulties.”

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