New Policy Raises Online Guarantee Limit to 300 Million KRW... Expansion to Corporate Customers Included

Top-Rated Commerce Credit Index Companies Increase Guarantee Limit from 100 Million to Up to 300 Million Won

[Asia Economy Reporter Song Seung-seop] The online guarantee limit for customers using the Korea Credit Guarantee Fund (KODIT) will be increased to a maximum of 300 million KRW. Additionally, the Easy-One Guarantee, which was previously limited to sole proprietorships, will be expanded to include corporate enterprises.

On the 14th, KODIT announced that the limit for the 'Easy-One Guarantee,' which allows customers to issue guarantees online without visiting a branch, has been raised from 100 million KRW to a maximum of 300 million KRW.

KODIT raised the support limit to up to 300 million KRW for companies with excellent transaction credit scores among those applying for the Easy-One Guarantee, enabling companies with strong transaction credit to secure sufficient working capital without visiting a branch. Furthermore, the guarantee fee for applying companies will be reduced by 0.2 percentage points to ease their financial burden.

Starting in July, the Easy-One Guarantee will be expanded from sole proprietorships to include corporate enterprises. To meet the demand for non-face-to-face policy funds from corporate enterprises, KODIT plans to add a dedicated screening process and electronic contract system for corporations beginning next month.

Launched in May last year, the Easy-One Guarantee is a product that allows customers to apply for guarantees via the KODIT website or mobile application without the need to visit a branch in person.

Companies can check their eligibility for guarantee application in real time through a big data-based self-preliminary screening, submit documents online, and after on-site investigation and guarantee screening are completed, KODIT issues the guarantee certificate through an online electronic contract.

A KODIT official stated, “With the expansion of the Easy-One Guarantee support limit, many companies, including those affected by COVID-19, can quickly receive guarantee support,” and added, “Going forward, KODIT will continue to respond to customers’ non-face-to-face guarantee demands and actively support government policies such as the Korean New Deal.”