Duzon Bizon-Shinhan Bank-Korea Chamber of Commerce and Industry, 'Strengthening SME Competitiveness' Business Agreement

Duzon Bizon, Shinhan Bank, and the Korea Chamber of Commerce and Industry signed a business agreement to support "accounts receivable factoring and digital transformation (DX) solutions for small and medium-sized enterprises." From the left in the photo are Kim Yong-woo, CEO of Duzon Bizon; Woo Tae-hee, Executive Vice Chairman of the Korea Chamber of Commerce and Industry; and Jin Ok-dong, President of Shinhan Bank. / Photo by Duzon Bizon

[Asia Economy Reporter Jang Hyowon] Duzon Bizon (CEO Kim Yong-woo) announced on the 16th that it has signed a tripartite business agreement (MOU) with Shinhan Bank (President Jin Ok-dong) and the Korea Chamber of Commerce and Industry (Chairman Chey Tae-won) to support ‘accounts receivable factoring and digital transformation (DX) solutions for small and medium-sized enterprises (SMEs).’

The signing ceremony held at Duzon Eulji Tower in Jung-gu, Seoul, was attended by key officials including Duzon Bizon CEO Kim Yong-woo, Shinhan Bank President Jin Ok-dong, and Korea Chamber of Commerce and Industry Executive Vice Chairman Woo Tae-hee.

‘Accounts receivable factoring’ refers to the early sale of a company’s accounts receivable to a factor such as a financial institution before maturity to quickly convert them into cash, which helps SMEs manage their funds smoothly. Additionally, ‘digital transformation’ means innovating business operations centered on digital and mobile platforms regardless of time and place, maximizing SMEs’ productivity and efficiency.

This business agreement is notable because it combines the digital transformation capabilities of a leading domestic ICT company, the financial strength of a major commercial bank, and the cooperation of the Korea Chamber of Commerce and Industry, the largest economic organization in Korea. It is expected to meet the financial needs of SMEs, mainly among the Chamber’s member companies, and support their digital transformation to substantially enhance SME competitiveness.

To this end, Duzon Bizon and Shinhan Bank plan to establish a joint venture (JV) for a financial platform such as accounts receivable factoring to supply a digital financial platform specialized for SMEs and alleviate their funding shortages. The Korea Chamber of Commerce and Industry will provide service support and promotion targeting its 190,000 member companies.

They will also provide SME-specialized services such as digital transformation solution supply, education, and customized consulting. In particular, to reduce the initial cost burden required for adopting digital transformation solutions and support their successful digital transformation, customized corporate financial products with preferential interest rates will be offered.

Meanwhile, Duzon Bizon has been developing its own accounts receivable factoring business since being selected as an innovative financial service provider by the Financial Services Commission in 2019, expanding external capital suppliers such as Mirae Asset Capital, Welcome Financial Group, and Korea Investment Savings Bank, thereby securing stable service provision capabilities. In April, it took the lead in expanding accounts receivable factoring by not only building and operating a factoring platform for the Small and Medium Business Corporation but also exclusively supplying accounting information analysis data to determine the eligibility of companies applying for accounts receivable factoring.

A Duzon Bizon official said, “As market interest rates rise sharply and funding channels through the market are blocked, various urgent issues faced by SMEs have emerged as national challenges amid rapidly changing domestic and international business environments. Through this business agreement, we will further strengthen partnerships and establish a comprehensive support framework for SMEs.”