Gwangju City Council Member Lee Myungno: "Urgent Need for Manpower to Support Guarantees at Gwangju Shinbo"

Surge in Non-Face-to-Face Applications
Need for a Dedicated Department for Timely Guarantees

Lee Myungno, member of Gwangju City Council, is speaking at the Gwangju Credit Guarantee Foundation Chairman confirmation hearing held on the 24th. Provided by Gwangju City Council

There has been a call for the Gwangju Credit Guarantee Foundation to actively address delays in guarantee issuance and enhance support for small business owners by securing additional personnel and establishing a dedicated department, in response to the recent surge in non-face-to-face guarantee applications.

At the personnel hearing for the chairman of the Gwangju Credit Guarantee Foundation held on the 24th, Lee Myeongno, a member of the Gwangju City Council (Democratic Party of Korea, Seo-gu 3), pointed out, "Although guarantee applications are diversifying and rapidly increasing through non-face-to-face channels, the number of staff remains unchanged, making it impossible to provide timely guarantee support."

Currently, the foundation accepts guarantee applications through various methods, including consultation reservations via its website, non-face-to-face applications through bank apps, and applications via the foundation's own platform. Last year, non-face-to-face guarantees increased by approximately 30.7 percentage points compared to the previous year.

As a result, customer convenience has improved, but the number of staff for screening and credit management has remained the same. In particular, despite the increase in non-face-to-face guarantee applications, the foundation still issues guarantee certificates through direct screening, leading to concerns about excessive workloads due to staff shortages.

In fact, in January of this year alone, there were 606 guarantee applications through bank apps, and in February, the number increased to 1,335, which is attributed to the special guarantee program implemented by the city. However, as the foundation's workforce has not increased, there have been delays in issuing guarantee certificates.

Lee emphasized, "As non-face-to-face guarantees are expected to continue expanding, it is necessary to establish a dedicated department and increase personnel." He added, "We should actively consider, in cooperation with the relevant departments, the establishment of a dedicated department for non-face-to-face guarantees, as is the case in other regional foundations."

Lee also stated, "Nowadays, even bank loans are processed non-face-to-face. As customer convenience becomes increasingly important, the foundation must also streamline its systems and workforce accordingly." He added, "The city and city council should work closely together to do their utmost to help small business owners overcome crises."