Business Agreement Signed with Industrial Bank of Korea and Korea Technology Finance Corporation
The Korea Credit Guarantee Fund announced on June 13 that it will provide preferential guarantees totaling approximately 650 billion KRW to support small and medium-sized enterprises (SMEs) struggling due to changes in the global trade environment.
In relation to this, the Korea Credit Guarantee Fund signed a financial support business agreement with Industrial Bank of Korea and Korea Technology Finance Corporation at the headquarters of Industrial Bank of Korea in Jung-gu, Seoul on the same day.
This agreement was established to help SMEs overcome crises caused by the rapidly changing trade environment and to support the enhancement of their global competitiveness through cooperation among policy financial institutions.
Under the agreement, the Korea Credit Guarantee Fund plans to provide preferential guarantees totaling approximately 650 billion KRW, using about 25.2 billion KRW contributed by Industrial Bank of Korea as funding. The support targets include export and overseas expansion companies, companies operating in key industries, companies in the materials, parts, and equipment sectors, companies engaged in new growth engine industries, and companies concerned about damages from rising raw material prices.
For companies supported under the special contribution agreement guarantee, the Korea Credit Guarantee Fund will apply a 100% guarantee ratio for three years and reduce the guarantee fee by 0.2 percentage points. In addition, through the guarantee fee support agreement guarantee, the fund plans to provide a 0.7 percentage point guarantee fee support benefit for three years.
Choi Wonmok, Chairman of the Korea Credit Guarantee Fund, stated, "This agreement is meaningful in that policy financial institutions are joining forces to support SMEs facing difficulties due to external uncertainties," and added, "We will continue to strengthen cooperation among policy financial institutions and provide effective financial support so that our SMEs can overcome trade crises and advance into the global market."
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