The Korea Credit Guarantee Fund (KODIT) celebrated its 41st anniversary on June 1 with a ceremony at its head office in Daegu. All of the entire officers and staff signed “E-Clean” Affidavits in which they swore to be “clean” at work all the time.
KODIT, since launching in 1976, has done its role as a state-owned policy financial organization by issuing over 42 trillion won worth of credit guarantees to some 200,000 business firms annually, growing up as a big timber supporting firms with credit guarantees. Those firms created good jobs, especially in fostering the growth of strong small business firms so that they can make a contribution to the economy.
The number of business firms that have used KODIT credit guarantees has been increasing, coming to 1.48 million as of the end of 2016, with employees also rising steadily. KODIT provided 15 trillion won worth of credit guarantees to 74,000 startups, taking credit for creating 420,000 jobs in the process. Just over 730 firms have also listed on the Kosdaq, Konex and Kospi after getting KODIT credit guarantee support since 1990.
Since 2010-2016, around 30 percent of the listed firms got credit guarantees from KODIT, showing that the credit guarantees were a great help to those firms in overcoming the “Death Valley” that stood in their way to reaching a formal track for growth.
KODIT said it will launch the 4.0 Start-up Guarantee Program on May 25 to support the start-ups and create jobs with the 4th Industrial Revolution about to sweep the industrial landscape, bringing with it technology wonders, AI and Big Data.
The credit guarantee program is divided into four stages, Start-up, Warm-up, Scale-up and Jump-up, will provide operating funds up to 3 billion won repayable in three years through credit lines so that the start-ups would be able to develop the 11 leading technologies associated with the new industrial revolution, including fusion and convergence technologies.
The lines of credit will be extended to startups with at least three years in operation and produce the products and services related to the 11 leading technologies in the new industrial revolution.
Chairman Hwang Rok of the Korea Credit Guarantee Fund (KODIT) said on Feb. 27 that he will run KODIT in such a way as to create jobs by extending financial guarantees to promising startups to help usher in the 4th Industrial Revolution. KODIT will use a new platform to find qualified startups. He told reporters at a media conference at Garden Hotel in Mapo Ward, Seoul, that the most important factor is providing support to startups so they can exercise their capacities in full so they can create jobs with continued growth in their operations. “KODIT is ready to extend its one-stop support to those startups in every phase of their operations, including M&As and exit strategies,” the KODIT chairman said.
KODIT established the Start-Up Growth Department under the wing of its 4.0 Start-Up Division to streamline support for startup businesses, incorporating responsibilities including investment, insurance and consultation, in addition to traditional roles involving the insurance of credit guarantees.
The fund will assign 37 professional consultants in the newly created startup department. KODIT has also decided to include its Start-Up Nest in the new platform to be introduced later in the year, which is in line with its plan to find 100 startups.
KODIT aims to find 200 qualified startups next year and 300 in the following year to achieve its mission to help create new jobs around the country by facilitating the success of startups.