[2021 National Audit] Export Hope Companies' Special Guarantee Fades... Halved in 5 Years

Assemblyman Kim Byung-wook: "Shinbo Must Strengthen Active Cooperation Between Large Corporations and Exporting SMEs"

Headquarters building of the Korea Credit Guarantee Fund

[Asia Economy Reporter Kwangho Lee] The "Export Hope Company Special Guarantee" provided by the Korea Credit Guarantee Fund (KODIT) to companies hoping to export or preparing to do so is fading year by year.

According to data submitted by KODIT to Kim Byung-wook, a member of the National Assembly's Political Affairs Committee from the Democratic Party of Korea, as of September this year, the amount of the Export Hope Company Special Guarantee was 5.1 billion KRW, down 30.1% (2.2 billion KRW) from last year (7.3 billion KRW). Compared to 2017 (10.5 billion KRW), it has sharply decreased by 51.4% (5.1 billion KRW).

The number of supported companies shrank from 292 in 2017 to 42 last year, and 32 as of September this year.

The Export Hope Company Special Guarantee is a customized guarantee program provided by KODIT according to the export capability stages of small and medium enterprises (Export Hope Company, Export Entry Company, Export Expansion Company, Export Core Company).

Assemblyman Kim said, "Due to the impact of COVID-19 last year, international travel was virtually halted, causing considerable difficulties for small and medium export companies. Support must be activated starting from companies preparing to export so that they can later grow into core companies focusing on exports." He added, "KODIT should not limit itself to financial support but actively seek ways to promote win-win cooperation between large corporations and small and medium export companies."