Award-Winning Entry in National Development Project Contest
'Oesanggap Hi-Pass' Becomes Reality
Launch of SME Accounts Receivable Trading Platform
[Asia Economy Reporter Moon Chaeseok] Financial institutions including Shinhan Bank are making the 'Accounts Receivable Factoring' service, which allows small and medium-sized enterprises (SMEs) to immediately convert their receivables into cash, a reality. The Korea Chamber of Commerce and Industry (KCCI) announced that this case is the first achievement where a public idea led to commercialization.
KCCI announced that on the 16th at 3 p.m., it signed the 'SME Accounts Receivable Factoring and Digital Transformation Business Agreement' with Shinhan Bank and Douzone Bizon at Douzone Bizon's Euljiro headquarters. The signing ceremony was attended by Woo Taehee, Executive Vice Chairman of KCCI, Jin Okdong, President of Shinhan Bank, and Kim Yongwoo, CEO of Douzone Bizon.
Accounts receivable factoring is a service that allows immediate cash collection of trade receivables based solely on credit. It was an idea awarded in last year's KCCI National Development Project Contest. Earlier this year, through the 'Commercialization Challenge' to find a CEO for the idea, it proceeded to commercialization. This agreement ceremony was held to facilitate the commercialization.
After the agreement, the three organizations plan to provide KCCI member companies with accounts receivable factoring, preferential interest rates, and support for digital-centered business innovation solutions. This is to help maximize the productivity and efficiency of SMEs.
Executive Vice Chairman Woo Taehee emphasized, "It is meaningful that a service that can increase liquidity for SMEs is being launched amid the triple crisis of high inflation, high interest rates, and high exchange rates in our economy," and added, "We will actively support spreading this widely to KCCI member companies nationwide."
Accounts receivable factoring is both a hope of SMEs and a concern for the government. In this regard, on the 2nd, the Ministry of SMEs and Startups announced that it will provide 40 billion KRW worth of accounts receivable factoring through the Korea Technology Finance Corporation for new technology businesses with high business potential.
KCCI also announced plans to release a documentary early next month that captures the commercialization process of the National Development Project ideas. A KCCI official said, "You will be able to see not only the touching scenes of entrepreneurs struggling for commercialization but also realistic stories of growth and adversity."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
