Fund unveils innovative products

A KODIT official, back, consults with two representatives from a small company in this file photo. The state-run agency seeks to come up with innovative strategies and programs to play a bigger role and offer differentiated customer services. / Courtesy of KODIT

By Yi Whan-woo

Korea Credit Guarantee Fund (KODIT) has sought to change its status from a credit-guaranteeing government agency to a state-run financial company in order to have more autonomy and expand its revenue sources.

It set up innovative strategies and programs to play a bigger role and offer differentiated customer services to overcome limitations on it because it is classified as a government agency.

To make its dream come true, the fund established a long-term strategy under the name of “KODIT Future Vision 2020” in December 2012 to brace for changes in business circumstances and lead the development of SMEs.

As part of the plan, the agency will select 2,000 small- and mid-size enterprises (SMEs), which have the potential to compete on the global stage and support them by 2020. With its assistance, the state-run agency hopes that they will become the backbone of the country’s economy by creating more jobs and boosting the national economy.

It also plans to develop 20 new programs on various areas, including finance and management, to support SMEs effectively.

“We seek to become a ‘creator’ of better business environment for SMEs rather than remaining as a credit-guarantee supplier,” it said in a statement.

With the transformation, the agency expects it will have a bigger role in providing credit guarantees for SMEs which struggle to secure funds due to lack of collateral and credit guarantees.

KODIT also plans to name the new company the Korea Corporate Finance Corp. focusing on new growth engines, such as renewable energy companies and firms doing eco-friendly business, which the government seeks to support. In the long-term, it plans to strengthen its autonomy by reaching out to new businesses and diversifying its credit guarantee projects.

It came up with a new motto, “Happy Companies, Value Creator,” vowing to provide companies the best circumstances in which to do business. The motto also illustrates KODIT’s will to transform from a mere supplier to a value creator, which helps with companies’ development.

In April, the fund launched a smartphone application service for the SMEs to check on the amount they can borrow from banks under the KODIT-backed loans, as well as online consultation services. Those who wish to have a face-to-face consultation with the KODIT officials can also make a reservation via the application.

The so-called “Firm Doctor” program introduced in the same month allows SMEs to have a team of consultants from KODIT to observe its management exclusively up to one year.