Korea Credit Guarantee Fund

The Korea Credit Guarantee Fund (KODIT) is a prominent public financial institution in South Korea, established in 1976 under the Korea Credit Guarantee Fund Act. Its primary mission is to foster economic growth by supporting small and medium-sized enterprises (SMEs) and startups. KODIT achieves this by providing credit guarantees to financial institutions, thereby mitigating the risks associated with lending to businesses that may lack sufficient collateral or a long credit history. This mechanism encourages commercial banks to extend much-needed financing to the backbone of the Korean economy.

Beyond its core credit guarantee function, KODIT offers a comprehensive suite of support services. These include direct investments in promising ventures, business consulting, and technical assistance programs tailored to help SMEs and startups enhance their competitiveness and sustainability. KODIT also develops specialized guarantee programs for innovative companies, specific strategic industries, and businesses facing temporary financial challenges, demonstrating its adaptive approach to economic needs.

KODIT plays a crucial role in the South Korean financial ecosystem, acting as a vital bridge between SMEs and the banking sector. Its extensive reach and long-standing operations have significantly contributed to job creation and economic stability. As of late 2023, KODIT's total outstanding guarantees exceeded ₩80 trillion KRW (approximately $58 billion USD), underpinning a substantial portion of SME financing in the country. Annually, KODIT supports hundreds of thousands of businesses, facilitating their access to capital and enabling their growth and innovation.