Procurement Enterprise Mutual Aid Association Business in Full Swing... "Guarantee Fee Burden Reduced by Up to 50%"

The guarantee business of the Procurement Enterprise Mutual Aid Association (hereinafter referred to as the Mutual Aid Association) has officially begun. Through this business, the burden of guarantee fees for contracts, bids, and advance payments for small and venture companies participating in the procurement market is expected to be significantly reduced.

According to the Public Procurement Service on the 24th, the Mutual Aid Association is a corporation established based on the revised and enforced "Procurement Business Act" in July. Its operational purpose is to revitalize economic activities by managing guarantee, mutual aid, and financial loan businesses for procurement enterprises.

The Public Procurement Service has approved the establishment of the Mutual Aid Association and authorized the guarantee regulations. It also actively supported the swift establishment and operation of the business by revising related laws so that guarantees issued by the Mutual Aid Association can replace guarantee deposits.

Based on this, the Mutual Aid Association has completed the construction of its IT system, developed guarantee products, and established terms and conditions, enabling it to start the guarantee business from today (the 24th).

The business focuses on allowing procurement enterprises to obtain guarantees for contracts, bids, and advance payments at guarantee fees 25% to 50% lower than those of other mutual aid associations or private guarantee companies when using the Mutual Aid Association’s guarantee products.

By replacing the mainly used private guarantee institutions with the Mutual Aid Association, which offers relatively lower fee rates, the aim is to reduce the burden on procurement enterprises.

Furthermore, starting next year, the Mutual Aid Association plans to expand its business areas to include mutual aid projects related to compensation for damages and losses due to occupational accidents, as well as low-interest financial loans, thereby practically contributing to lowering the burden on procurement enterprises.

Lim Gi-geun, Administrator of the Public Procurement Service, said, “The Mutual Aid Association will play a role in alleviating the financial cost burden of procurement enterprises and is expected to be a strong support for small and venture companies to overcome the management downturn. We hope that the Mutual Aid Association will support the sustainable growth of procurement enterprises through various mutual aid projects and low-interest financial loans, while also contributing to maintaining fiscal soundness and preventing financial accidents.”

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