Shin Yong Bo Jeung Gi Geum Raises Guarantee Limit to 200 Million KRW for Outstanding Social Economy Enterprises

New 'Social Economy Enterprise Guarantee Operation Program' Revamped
Preferential Treatment for Enterprise Guarantee Ratio (100%) and Guarantee Fee Rate (0.5%)

The Korea Credit Guarantee Fund (KODIT) will expand the guarantee limits for outstanding social economy enterprises starting from the 1st of next month.

According to KODIT on the 30th, the guarantee limits for companies under the revamped ‘Social Economy Enterprise Guarantee Operation Program’ will increase by 200 million KRW each. The guarantee limit for social enterprises and cooperatives will rise from 300 million KRW to 500 million KRW, while for village enterprises and self-sufficiency enterprises, it will increase from 100 million KRW to 300 million KRW.

This program was launched in 2012 to support guarantees for various social economy enterprises. Since 2018, a dedicated team has been established to expand support annually.

The support targets are companies ranked in the top 1st to 2nd grades within KODIT’s ‘Social Economy Enterprise Evaluation System’ grading scale (10 grades). KODIT evaluates not only the financial support feasibility but also focuses on social value realization and sustainability, considering the characteristics of social economy enterprises. Selected companies also receive preferential benefits such as a 100% corporate guarantee ratio and a fixed guarantee fee rate of 0.5%.

A KODIT official emphasized, “The system reform was decided by reflecting the government’s social economy policy direction and field opinions. We will continue to do our best to support the independence and growth of social economy enterprises and promote the spread of social value throughout the economic and social structure.”