Jungjinkong and Geumgyeolwon Join Hands to Boost SME Accounts Receivable Factoring

Policy Projects and Financial Network Integration
Support for Short-Term Liquidity Supply to SMEs

The Small and Medium Business Corporation (Chairman Kim Hak-do, hereinafter referred to as SBC) announced on the 17th that it has signed a business agreement with the Korea Financial Telecommunications and Clearings Institute (President Park Jong-seok, hereinafter referred to as KFTC) to revitalize the accounts receivable factoring business for small and medium-sized enterprises (SMEs).

Accounts receivable factoring for SMEs is a short-term liquidity support project with a maximum duration of 90 days. SBC supports early cash conversion of payment for goods and services provided to selling companies and collects payments from purchasing companies.

With this agreement, SBC and KFTC will establish a system to prevent overlapping factoring support in the financial sector and actively cooperate to revitalize SME accounts receivable factoring through sharing corporate information.

Specifically, they will join forces on ▲ linking B2B transaction information ▲ linking electronic accounts receivable information ▲ advancing accounts receivable operations based on B2B transactions ▲ sharing SME policy fund support and corporate evaluation information.

Through this, SBC will provide KFTC with accounts receivable information based on tax invoices and policy fund support information, while KFTC will provide accounts receivable information from the financial sector, including commercial banks, to cooperate in establishing a stable factoring ecosystem.

Kim Hak-do, Chairman of SBC, said, "This business agreement with KFTC is expected to help companies struggling with financing due to the economic crisis of high interest rates, high prices, and high exchange rates," adding, "Based on close mutual cooperation with KFTC, we will revitalize the accounts receivable factoring business that supplies short-term liquidity to small and medium ventures."