From Regional Credit Guarantees to Loans, Everything is Possible at Industrial Bank of Korea

Ministry of SMEs-led Industrial Bank-Regional Credit Guarantee Foundation Entrusted Guarantee Agreement

On the 31st, a consignment guarantee agreement between IBK and KODIT was signed at the IBK headquarters. From the left, Yoon Jong-won, President of IBK, Park Young-sun, Minister of SMEs and Startups, and Kim Byung-geun, Chairman of the Korea Credit Guarantee Fund.

[Asia Economy Reporter Kim Cheol-hyun] The Ministry of SMEs and Startups (Minister Park Young-sun, hereinafter referred to as the Ministry) announced that under the Ministry's leadership, IBK Industrial Bank of Korea (President Yoon Jong-won, hereinafter IBK) and the Korea Credit Guarantee Fund (Chairman Kim Byung-geun, hereinafter KODIT), delegated by 16 regional credit guarantee foundations (hereinafter regional CGFs), signed a business agreement on the 31st for simplified guarantees on ultra-low interest special loans.

The agreement, held at IBK's headquarters in Euljiro, Seoul, aims to entrust all guarantee-related tasks?from guarantee consultations currently conducted by regional CGFs to guarantee screening and issuance of guarantee certificates?to IBK. As a result, customers will be able to receive both guarantees and loans by visiting only IBK. This enables faster and more convenient fund supply compared to the past, when customers had to visit both banks and regional CGFs.

Although there have been cases where tasks such as guarantee consultations, document submission, and issuance of guarantee certificates were entrusted to commercial banks excluding guarantee screening, this is the first time since the establishment of regional CGFs that all tasks including guarantee screening are entrusted. This agreement, achieved through the Ministry's active mediation, is expected to resolve the recent delays in guarantee supply by regional CGFs.

At the signing ceremony, Minister Park Young-sun emphasized, "The agreement between IBK and the regional CGFs is very meaningful as it shares the demand for funds that had been concentrated on the regional credit guarantee foundations and establishes a system for faster financial support." She added, "I ask the institutions that signed this agreement to actively cooperate so that many small business owners who are struggling to secure funds at this very moment can receive timely financial support."