Business Agreement for Mutual Support Linking Policy Funds and Accounts Receivable Insurance
The Small and Medium Business Corporation (Chairman Kim Hak-do, hereinafter referred to as SBC) announced on the 30th that it has signed a business agreement with the Korea Credit Guarantee Fund (Chairman Choi Won-mok, hereinafter referred to as KODIT) to mutually support policy funds and accounts receivable insurance.
Kim Hak-do, Chairman of the Korea SMEs and Startups Agency (right), is taking a commemorative photo with Choi Won-mok, Chairman of the Korea Credit Guarantee Fund, after signing a business agreement on the morning of the 30th at Front1 in Mapo, Seoul.
This agreement was established to provide startup companies with long-term, low-interest policy funds linked with accounts receivable insurance and to strengthen the financial safety net through mutual incentives. SBC will offer preferential interest rates (0.1 percentage points) when companies insured under KODIT’s Dasarang Insurance apply for startup funds (operating), and KODIT plans to provide incentives such as a 10% reduction in insurance rates and an increased acceptance ratio (85%) when companies supported by SBC’s startup funds (operating) subscribe to accounts receivable insurance.
By mutually linking policy funds and accounts receivable insurance, it is expected to alleviate funding difficulties for startup companies and enhance business stability and growth through improved transaction reliability. Kim Hak-do, Chairman of SBC, stated, "Through this agreement, SBC and KODIT will form a policy one-team to strengthen the financial safety net for startup companies," adding, "SBC will continue to establish a sustainable growth foundation so that startup companies can overcome difficulties and take a leap forward through policy fund support." The mutual linkage system between policy funds and accounts receivable insurance is scheduled to be implemented from the second half of this year.
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