1 Introduction to KODIT & ACSIC

2 Table of Contents I.Overview of KODIT II.Credit Guarantee Service of KODIT III.ACSIC at A Glance

3 of KODIT Overview of KODIT Not-for-profit corporation founded under the special law called the Korea Credit Guarantee Fund Act (1976) Capital funds: USD 3.7 billion (As of the end of 2006) Outstanding guarantee: USD 29.6 billion (’06) No. of Guaranteed Companies : 203,096 (’06) No. of employees: 2,139 (’06)

4 Stimulate sound credit transaction Efficient management of credit information Credit guarantees for the liabilities of promising enterprises Facilitate financing of enterprises Contribute to the balanced development of the national economy Contribute to the balanced development of the national economy Mission

5 Framework of Supervision Fund Management Planning Operation Planning Governmental Contribution Ministry of Finance and Economy Ministry of Finance and Economy Small & Medium Business Admin Ministry of Planning and Budget National Assembly KODIT

6 Table of Contents I.Overview of KODIT II.Credit Guarantee Service of KODIT III.ACSIC at A Glance

7 Framework Credit Investigation Creditor Government Fee Credit Guarantee Contribution Loan Debtor Contribution Supervision Financial Institutions SME Guarantor KODIT

8 Approval Processes Consultation Application 2nd Step Credit Investigation 3rd Step Credit Evaluation 4th Step 1st Step Approval & Issuance of Credit Guarantee 5th Step

9 Performance of KODIT Outstanding Guarantees (A)32,73433,57131,09929,634 Subrogation (B) (B/A, %) 1,743 (5.3) 1,711 (5.1) 1,358 (4.4) 672 (2.3) Capital Funds (C)3,3703,2033,1663,720 Leverage Ratio (A/C, times) (Unit : billion of KRW)

10 Introduced Special Guarantee Programs to cope with the financial crisis in 1997 Total 22 special guarantee programs 250,130 cases / 30.8 trillion KRW Played a critical role in bailing Korea out of the financial crisis Revived the financial market Acted as a social safety net KODIT & Asian Financial Crisis

11 Supports SMEs’ financing  promotes economic vitality by supporting SMEs, the driving force of economic growth Contributes to building up a credit-based society  focusing on intangible resources rather than collateral Contributes to balanced growth of the economy  eases the inequality Between SMEs and Les Among locals Credit Guarantee & Korean Economy

12 Table of Contents I.Overview of KODIT II.Credit Guarantee Service of KODIT III.ACSIC at A Glance

13 ACSIC at A Glance Asia Credit Supplementation Institution Confederation (ACSIC) Formed in 1987 To promote the development of credit supplementation system for small business through exchange of information, discussion and interchange of personnel among member institutions

14 of ACSIC Members of ACSIC 16 institutions from 11 countries (including 2 observers) Operates no permanent secretariat Countries (No of member institutions) Indonesia (3), Japan (2), Korea (3), Malaysia (1), Nepal (1), Papua New Guinea (1), Philippines (1), Sri Lanka (1), Taiwan (1), Thailand (1), India (1)

15 ACSIC Conference Held annually Hosted by member institutions on a rotating basis Consists of Summit meeting, Plenary session, etc. 20 th Conference held in Bali, Indonesia (5 Nov – 8 Nov) Other Activities ACSIC Training Program Working-level Council between member institutions

16 Case of Japan JASME Japan Finance Corporation for Small Business Provides insurance services to NFCGC NFCGC National Federation of Credit Guarantee Corporations 52 Credit Guarantee Corporations nationwide Provide guarantees to SMEs in their municipalities No of Employees : 5,778 Outstanding Guarantees : 246 billion USD (2006)

17Summary Characteristics of Asian Guarantee System A typical guarantee institution in Asian region Is established by the government Is founded by a special law Relies on guarantee fees from guaranteed companies and government subsidies Actively involves in the credit rating process

18 Thank You KODIT Public Relations Office International Affairs Team Tel : (82) Website :