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Korea credit guarantee fund and its contribution to the Korean economy

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Frame of Image iciency in c o l l a t e r a l . In order to alleviate this problem, Korea Credit Guarantee Fund (KODIT) was founded in June 1976 by the Korea Credit Guarantee Fund Act. Its objective is to lead the balanced development of the economy by extending credit guarantees for SMEs that have future prospects but lack tangible collateral and by stimulating sound credit transactions through the efficient management of credit information. KODIT is a public financial institution providing comprehensive supports for SMEs. With its capital fund of USD 3.2 billion, KODIT provides 11 types of general credit guarantees and P-CBO guarantee. As of the end of 2005, the outstanding credit guarantee reached over USD 31.6 billion. In addition, KODIT operates credit information management, guarantee-combined i n v e s t m e n t , credit insurance, management consulting and infrastructure credit guarantee services. T h r o u g h o u t its history, KODIT has actively supported the SMEs of Korea, thereby p r o m o t i n g economic vitality, easing the inequalities within the economy and instilling the importance of credit. In particular, KODIT played a crucial role in reviving the economy by i m p l e m e n t i n g government policies at every financial crisis and stabilizing the market. Its contribution was clearly shown in the studies that proved production inducement, economic value added inducement and job creation effect of credit guarantee service. Upon its 30-year anniversary, KODIT is preparing


Full Text
Title Korea credit guarantee fund and its contribution to the Korean economy
Similar Titles
Material Type Reports
Author(English)

Park, Yong Pyung

Publisher

Korea Credit Guarantee Fund; KODIT

Date 2006
Pages 30
Subject Country South Korea(Asia and Pacific)
Language English
File Type Documents
Original Format pdf
Subject Economy < Economic Conditions
Economy < Economic System

Abstract

Small and medium-sized enterprises (SMEs) serve as the root of the national economy. However, SMEs suffer from limited access to financing due to high administrative costs of small-scale lending, asymmetric information, high risks attributed to SMEs and deficiency in collateral. In order to alleviate this problem, Korea Credit Guarantee Fund (KODIT) was founded in June 1976 by the Korea Credit Guarantee Fund Act. Its objective is to lead the balanced development of the economy by extending credit guarantees for SMEs that have future prospects but lack tangible collateral and by stimulating sound credit transactions through the efficient management of credit information. KODIT is a public financial institution providing comprehensive supports for SMEs. With its capital fund of USD 3.2 billion, KODIT provides 11 types of general credit guarantees and P-CBO guarantee. As of the end of 2005, the outstanding credit guarantee reached over USD 31.6 billion. (The rest omitted)