Industrial Infrastructure Credit Guarantee Fund Expands Guarantee Limit to 1 Trillion Won

The Industrial Infrastructure Credit Guarantee Fund announced on the 20th that it has increased the maximum credit guarantee limit per project from the existing 700 billion KRW to 1 trillion KRW to actively support funding for large-scale private investment projects.

Recently, in the private investment market, there have been continuous calls to raise the guarantee support limit of the Industrial Infrastructure Credit Guarantee Fund to facilitate smooth financing and reduce financial burden due to the enlargement of private investment projects.

Accordingly, the government included a plan to expand the guarantee limit reflecting market opinions in the second half economic policy direction announced last July, and at the Cabinet meeting held on the 12th, approved the amendment to the Enforcement Decree of the Act on Private Investment in Social Overhead Capital, which came into effect on the 19th.

With this increase in the guarantee limit, the Industrial Infrastructure Credit Guarantee Fund is expected to actively support the smooth progress of upcoming large-scale private investment projects such as the metropolitan area express railroad (GTX) and promote dynamic economic growth centered on the private sector.

Meanwhile, this year, the Industrial Infrastructure Credit Guarantee Fund has improved systems such as lowering guarantee fees and establishing an electronic guarantee platform to revitalize the private investment market, and supplied a record total guarantee amount of 2.65 trillion KRW for private investment projects including the undergrounding of the Dongbu arterial road and the Seoul Arena complex cultural facility.

An official from the Industrial Infrastructure Credit Guarantee Fund said, “This increase in the guarantee limit will provide practical help for smooth financing of large-scale private investment projects,” and added, “Going forward, the Industrial Infrastructure Credit Guarantee Fund will faithfully perform its role as a reliable pillar as the only domestic policy guarantee institution supporting private investment to revitalize the sluggish private investment market.”