Kodit set to issue 46.6 trillion won worth of credit guarantees this year, up 1.75 trillion won from preceding year, to strengthen economic base by helping SMEs
President Yoon Dae-hee of Korea Credit Guarantee Fund (Kodit). (Photos: Kodit)
Korea Credit Guarantee Fund (Kodit) is set to provide 46.750 trillion won in credit guarantees this year, up 1.75 trillion won more than what it provided in the preceding year. As of Aug. 31, Kodit is ready to issue 46.589,7 trillion won in general credit guarantees this year.
As is the case throughout its history, Kodit has been strengthening the economic base and spurring SMEs’ contribution to the national economy.
Kodit plans to provide 45.8 trillion won through the rest of this year, up about 2.8 trillion won compared to the preceding year, mostly to startups, export firms, and the companies that are likely to create jobs.
Kodit expanded the total volume of credit guarantees this year, introducing tailor-made credit guarantees to suit the special characteristics of the companies getting such guarantees.
The credit guarantees went to manufacturing companies which want to explore overseas markets and reform their operations. The credit guarantees were provided to the firms that want to sharpen their competitive power like auto and shipbuilding.
The companies that are likely to create jobs around the country also got the credit guarantees.
Kodit specialized the credit guarantees issued for bonds so that those companies can safely secure funds thru the issuance of bonds. This year, the company plans to help those companies by issuing guarantees for 700 billion won worth of bonds, in particular to companies involved in making auto parts.
So far this year, 40.101 billion won worth of bonds were backed up by the guarantees issued by the company.
Kodit has also been helping SMEs meet their growth potential with guarantees and direct investments in their projects so that they can secure more funds at the capital market with strengthened accessibility.
Kodit provides 11 types of general credit guarantees and P-CBO guarantee.
As of the end of 2005, the outstanding credit guarantee reached over $31.6 billion.
In addition, Kodit operates credit information management, guarantee-combined investment, credit insurance, management consulting and infrastructure credit guarantee services.
Throughout its history, Kodit has actively supported the SMEs of Korea, thereby promoting economic vitality, easing the inequalities within the economy and instilling the importance of credit.
In particular, Kodit played a crucial role in reviving the economy by implementing government policies at every financial crisis and stabilizing the market.
Its contribution was clearly shown in the studies that proved production inducement, economic value-added inducement and job creation effect of credit guarantee service.
The credit guarantee services by the agency are to facilitate the financing of SMEs through the credit guarantees and stimulate the sound credit transaction through the efficient management of credit information.
Kodit’s capital funds are the financial resources prerequisite for Kodit to maintain its public trust, to provide credit guarantee, to make payment under guarantees and to earn revenue from managing surplus capital funds.
The main sources of the capital funds are the contributions from the government, financial institutions and enterprises. The contribution from the government is subject to change every year depending on the government's policy on credit guarantees.
Kodit has also been expanding its support to SMEs by providing them with consulting and non-financial support including training of their employees.
Kodit hosts the ‘2019 Kodit Investment Company IR’ session at COEX in Gangnam-gu, Seoul, on Nov. 5.