SMBC Signs MOU with K Bank to Utilize Policy Fund Pre-Verification System

Expanding Public-Private Collaboration
Enhancing Non-Face-to-Face Financial Convenience for Policy Funds

The Small and Medium Business Corporation announced on the 31st that it has signed a memorandum of understanding (MOU) with K Bank to utilize the "policy fund pre-verification system" in order to enhance non-face-to-face financial convenience for small and medium-sized enterprises.

Ilho Kim, Executive Director of Corporate Finance at the Small and Medium Business Corporation (right), is taking a commemorative photo after signing a business agreement at the K Bank headquarters in Seoul. Small and Medium Business Corporation

The corporation supports innovative growth by identifying companies with excellent technology and business potential and providing them with long-term, low-interest policy funds. After support is provided, the corporation checks the usage details of the loans to ensure that policy funds are used for their intended purposes. To improve the convenience and efficiency of this monitoring system, the corporation introduced the "policy fund pre-verification system" in March of last year. This system verifies the intended use of loan funds in advance, allowing disbursement only if the use aligns with policy objectives.

In particular, if electronic tax invoices from the National Tax Service's Hometax or insurance subscription information from the Four Major Social Insurance Information Linkage Center can be accessed, the intended use of loan funds can be verified in real time without submitting separate documents. This has enhanced customer convenience and the transparency of policy fund usage. Policy funds subject to mandatory monitoring for out-of-purpose use through the pre-verification system include: ▲Youth Startup Funds, ▲Re-Startup Funds, ▲Proactive Voluntary Restructuring Program, and ▲Operating Funds exceeding 300 million won.

This agreement is the first case of cooperation with an internet-only bank since the corporation introduced the pre-verification system. It is significant in that it strengthens the accessibility and convenience of policy funds for small and medium-sized enterprises by utilizing K Bank's non-face-to-face digital financial infrastructure. Through this, operational efficiency for digital-based policy fund management is expected to be further enhanced.

Ilho Kim, Executive Director of Corporate Finance at the Small and Medium Business Corporation, stated, "Through this collaboration between the corporation and K Bank, we have advanced the procedures for verifying policy fund usage and established a foundation for improving companies' access to finance. I hope this agreement becomes an important turning point in building a trusted financial ecosystem for small and medium-sized enterprises."

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