Strengthening Access to Policy Funds through the Establishment of a Financial Transaction Inquiry System
[Asia Economy Reporter Kim Cheol-hyun] Until now, to apply for policy funds, applicant companies had to obtain a financial transaction confirmation letter directly from their banking or financial institutions and submit it to the Small and Medium Business Corporation (SBC). However, from now on, it is possible to apply for policy funds without submitting paper documents.
The Small and Medium Business Corporation (Chairman Kim Hak-do, hereinafter SBC) announced on the 23rd that it will reduce the burden of document submission for companies and strengthen accessibility to policy funds by introducing a financial transaction inquiry system and completely abolishing the submission of financial transaction confirmation letters.
The financial transaction inquiry system is a system established by SBC in connection with the Korea Credit Information Services and credit rating companies to electronically check the amount of borrowings and delinquency information directly. Through this, policy fund screening can be conducted without receiving separate paper documents from companies.
According to SBC's own survey, the average number of financial institutions per small and medium venture business is about five, and until now, companies applying for policy funds had the inconvenience of issuing and submitting about 10 financial transaction confirmation letters during the evaluation and loan stages.
SBC has newly established the financial transaction inquiry system to reduce the burden on applicant companies in issuing and submitting financial transaction confirmation letters and to resolve delays in policy fund processing. Through this, companies applying for SBC policy funds are expected to save about 2 billion KRW in costs related to issuing financial transaction confirmation letters and shorten processing time by about three business days per company.
Chairman Kim Hak-do said, "SBC is actively leading the non-face-to-face and digital transformation of support for small and medium venture businesses in response to the new normal brought about by COVID-19," adding, "We will continue to do our best to enhance accessibility and convenience of policy funds based on close cooperation with related organizations."
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