Gyeonggido and Gyeonggi Credit Guarantee Foundation will open the future for Korea.
Title : Gyeonggi Credit Guarantee Foundation : making dreams come true for small businesses
Part 1. The initial start, the highest prestige!
(An introduction to the services of Gyeonggi Credit Guarantee Foundation)
96.5% of 3,040,000 Korean businesses consist of small companies and businesses that constitute the foundation of our nation.
However, small companies and businesses with the poor credit rating cannot obtain the funding from the financial institutions without the collaterals and they end up depending on private loans with high interests.
To resolve these chronic difficulties for small companies and businesses, Gyeonggi Credit Guarantee Foundation was established as the first regional credit guarantee foundation nationwide in March of 1996. GCGF supports small companies and businesses to gain economic independence through the credit guarantee.
Also in line with the rapidly changing economic scope, GCGF is supporting the next-generation promising industries such as the green growth companies, life science and content companies with the specialized credit guarantees.
Gyeonggi-do rising funds for small-to-medium companies used to cause a lot of inconvenience because it has to go through a variety of institutions. However, we have established One-Stop funding support system that would allow long-term, low-interest policy funding for regional entrepreneurs.
Part 2. Turning a crisis into an opportunity, opportunity into passion (performance and achievements)
Service (Progressive Guarantees)
First GCGF has extended the limits for the credit guarantees from 4 hundred million won to 8 hundred million won and started the ‘progressive guarantees’ by reforming the mindset of employees who were rather passive towards the corporate supports.
As a result, GCGF, which used to fund 300 billion won to 8,000 companies in 2004, has provided the credit guarantee up to 1 trillion and 500 billion won to 60,000 companies within 2010 alone. Therefore GCGF became a strong supporter for regional entrepreneurs who used to have many difficulties with the financial institutions.
After facing the global financial crisis, small companies and businesses were driven to the private loan market, whose interest rates were at 80~100%. The foundation has expanded the pool to include unregistered and non-store proprietors such as the street vendors, cart bars and life insurance planners, providing radical guarantees.
As a result, Gyeonggi Credit Guarantee Foundation was able to achieve incredible performance during the last 3 years, after the financial crisis. Our record indicates that we were able to support 2.3 times more number of small companies and 1.7 times more the amount in those 3 years, than 13 years prior to that period.
These results led to the honor received by Chairman Hae Jin Park, the ‘Letter of Encouragement in handwriting’ from President Myeong Bak Lee.
The active guarantees have acheieved the goals of Gyeonggi Credit Guatantee Foundation, reaching the total guarantee amount of 9 trillion won for the first time, nationwide, in August of 2011.
Satisfaction (Guarantees that visit you at your door)
Furthermore, GCGF has shattered the old practices of the guarantee agencies which stood on the side of suppliers with the ‘Visiting Guarantees’ and took a step closer to the entrepreneurs and the individual proprietors.
As a part of ‘Visiting Guarantees’ GCGF has expanded the branches which were only five in 2004 to currently 19 branches and 9 branch offices to enhance the convenience for the customers who live in the proximity. This has allowed the speedy and convenient service to the customers of guarantees within the district.
GCGF has also initiated the field guarantee service, which covers the entire process including the field consulting, document registration, credit evaluation and the issuance of written guarantees.
This one-stop service has received rave reviews from the small businesses, as it is done on the spot for those who cannot leave the site of business even for second such as the market merchants, street vendors and the owner of cart bars.
Speed (Speedy Service)
Gyeonggi Credit Guarantee Foundation has radically reduced the documents for submission to just 2 types, compared to the 14 types in the past. GCGF has developed and established Midas, a new comprehensive computer network while adopting CCRS, the corporate credit evaluation system, into the screening. This has greatly improved the speed of processing and largely reduced the processing time to within 5days, a process which used to take about 20 days.
Stabilization (Organizational Stability)
GCGF has provided guarantees of 37.39 billion won in 2004, resulting in the loss of 32.8 billion won. Since then, GCGF has greatly reduced the loss with a meticulous risk management and follow-up efforts. Therefore GCGF produced the best results in management in spite of the progressive guarantee support and increased management cost from growing braches and personnel.
Also, along with the efforts to reduce the loss, Gyeonggi Credit Guarantee Foundation has continued its efforts from various angles to secure the funding for the credit guarantee support. AS a result, the basic asset which was about 200 billion won in 2004 has expanded to about 500 billion won in 2011, building the stable foundation for the support of small companies and businesses.
Success management (The best institution in Gyeonggi-do for five consecutive years)
Gyeonggi Credit Guarantee Foundation has established an exemplary management-labor culture based on passion and loyalty, and has received recognition as the ‘workplace great for working’ for the first time as the affiliated public institution in Gyenggi-do.
Furthermore, GCGF has promoted strong inner reforms such as the introduction of the performance assessment system for individuals and branches and the through the commensuration according to the rank and seniority.
AS a result, GCGF was selected as the best public institution and the best CEO for five consecutive years from the management assessment for Gyenggido affiliated public institutions. Through creating such a new legend, GCGF has become the successful benchmarking case for the guarantee agencies for Korean credit guarantee foundations as well as the overseas credit institutions.
Part 3. Becoming closer through humbleness (responsibilities and obligations)
Gyeonggi Credit Guarantee Foundation strives to continuously expand its role for the public good as the public institution of the highest excellence within the district, through volunteering for the disadvantaged people in our midst.
GCGF has signed the ‘one region and one company sisterhood in the farming region’ and led the lend-a-helping-hand project and purchase of farming products.
With the ‘Let’s buy Gyeonggi Rice movements’ GCGF has led the mutual cooperation between agricultural regions and the cities. GCGF has also actively participated in the unlimited helping project held by Gyeonggi-do, donating the funds and goods to the handicapped, social welfare centers and the foreign workers support center.
By hosting the charity bazaar called ‘sharing love’, GCGF has practiced neighborly love and performed volunteer activities for reconstruction by visiting the small-to-medium companies struggling with flood damage.
GCGF has also signed the sisterhood with the Second Fleet Base of Pyeongtaek Navy and actively cooperated for raising the morale of the solders by donating goods and supporting entrepreneurship for discharged military persons.
Gyeonggi Credit Guarantee Foundation, as a faithful worker for the revitalization of the local community, promises that it will do its utmost ability to take a step towards the win-win situation for the small businesses in Gyeonggi-do. GCGF will strive for a bright future with a new attitude based on trust, loyalty and passion.