The New Role of Guarantee Institutions in the Fourth Industrial Revolution and Era of Inclusive Growth

ChulJu Kim, Yoonha Ham and Sangwon Cha

Chapter 12 in Investment in Startups and Small Business Financing, 2021, pp 367-402 from World Scientific Publishing Co. Pte. Ltd.

Abstract: Emergence of the Fourth Industrial Revolution, and the need for inclusive growth and other changes in the environment, require innovation in Republic of Korea’s guarantee system. The Korea Credit Guarantee Fund, hereafter referred to as “KODIT”, has provided credit guarantee services in a variety of industries and companies to achieve the dual policy goals of industrial development and market stabilization. It has also served as a market safety net in the event of national crisis, including the Asian Financial Crisis in 1997 and the Global Financial Crisis in 2008, helping the Korean economy quickly overcome them. Based on these experiences and results, KODIT is now seeking to vary its role in this rapidly-changing economic and technological environment, from merely providing guarantee services for small- and medium-sized enterprises (SMEs) to implementing innovation in the enterprise-wide business structure with a view to creating an innovative ecosystem, building data banks and platforms, and spreading social values. This chapter contains KODIT activities and performance in terms of its efforts to play a new part in this changing environment. We expect that the cases presented in this chapter will provide effective policy implications for the facilitation of SME financing in Asia, where public policy financing is relatively more important than in advanced countries, where venture capital investments are widely adopted and used.

Keywords: Small and Medium-Sized Enterprises; SMEs; Startups; Finance; SME Finance; Corporate Finance; Micro-Finance; Risky Businesses; Asymmetry of information; Investment; Venture Capital; Credit Guarantee; Credit Guarantee Fund; Credit Guarantee Corporation; Credit Guarantee Scheme; Korea Credit Guarantee Fund; KODIT; Small Businesses; Hometown Investment Trust Fund; HIT Funds Techno-Economic Feasibility Study; Tech Startup; Soft Infrastructure; Startup Ecosystem; Credit Guarantee Premium Rate; Regulatory Frameworks; Leveraging; Asia; East Asia; South East Asia; ASEAN; South Asia; Central Asia; Iran; Kazakhstan; Malaysia; Japan; Thailand; Naoyuki Yoshino; Farhad Taghizadeh-Hesary; Peter Morgan; Chul Ju Kim; Daehee Yoon; Islamic Banking; Islamic; Finance; The Fourth Industrial Revolution; Damu Fund; Inclusive Growth; Financial Inclusion (search for similar items in EconPapers)
JEL-codes: G3 O1 O16 (search for similar items in EconPapers)
Date: 2021
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.worldscientific.com/doi/pdf/10.1142/9789811235825_0012 (application/pdf)
https://www.worldscientific.com/doi/abs/10.1142/9789811235825_0012 (text/html)
Ebook Access is available upon purchase.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wsi:wschap:9789811235825_0012

Ordering information: This item can be ordered from

Access Statistics for this chapter

More chapters in World Scientific Book Chapters from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().