Kibo Implements 'Disaster SME Special Guarantee' to Support Companies Affected by Heavy Rainfall

Urgent On-Site Inspection Meeting Held... Full Effort to Identify and Support Affected Guarantee Companies

[Asia Economy Reporter Kim Cheol-hyun] The Korea Technology Finance Corporation (Chairman Jeong Yun-mo, hereinafter referred to as Kibo) announced on the 5th that it has implemented the 'Disaster SME Special Guarantee' for companies affected by heavy rain damage.

The Disaster SME Special Guarantee, which has been in effect since the 3rd, is a management crisis recovery support program for companies confirmed as disaster-affected SMEs by the government and local governments or those that have received decisions on disaster recovery-related financial support. In special disaster areas, companies can receive emergency funds up to KRW 500 million for working capital and within the required amount for facility funds. For general disaster areas, working and facility funds are supported up to KRW 300 million each.

This special guarantee minimizes the financial burden on affected companies by ▲increasing the guarantee ratio (from 85% to 90%) and ▲preferential guarantee fees (applying a fixed guarantee fee rate of 0.1% for special disaster areas and 0.5% for general disaster areas, compared to about 1.2% in normal cases). It also enables rapid support by applying a simplified evaluation model and measures to reduce the responsibility of handling staff. Additionally, if it is difficult to issue documents confirming the affected companies, verification can be replaced by on-site investigations, and for guarantees maturing for heavy rain-damaged companies, full extensions without repayment are allowed to reduce their burden.

At the same time as implementing the special guarantee, Kibo's management held a video conference with all branches to urgently inspect the damage situation of guaranteed companies and urged active support for the special guarantee for affected companies. Kibo Director Kim Young-chun stated, "We will do our best to support affected companies by prioritizing the processing of special guarantees over other tasks so that SMEs affected by heavy rain can resume normal operations and business activities as quickly as possible."