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7, Cheomdan-ro, Dong-gu, Daegu, Korea T. +82-1588-6565 www.kodit.co.kr

2019 Annual Report

KODITKOREA

CREDIT

GUARANTEE

FUND

The Best Partner Promoting the Challenges and

Growth of Enterprises

2019 Annual ReportKO

REA CREDIT G

UARANTEE FU

ND

As a leading public institution, KODIT contributes to the balanced development of the Korean economy by enhancing the enterprises’ financial accessibility and stimulating credit-based transactions through the effective management of credit information.

KODIT promotes the challenges and growth of enterprises

P-CBO

Infrastructure Credit Guarantee

Management Consulting Industry 4.0 Start-up

Start-up NEST Guarantee-aligned Equity Investment

Credit Insurance

Credit Guarantee

Table of Contents

Message from the Chairman

I. Overview

06 Highlights of 2019

08 Economic Trends of 2019

09 SME Trends of 2019

Ⅱ. Management Strategy & Risk Management

12 Vision

14 Ethics Management & Customer Satisfaction

15 Risk Management System

Ⅳ. Major Performances

18 Capital Fund

19 Credit Guarantee Service

22 Major Improvements in Guarantee System & New Products

23 Equity Investment

24 Default & Debt collection

25 Credit Insurance Service

26 Infrastructure Credit Guarantee Service

28 Startup Support Service

30 International Cooperation

31 2019 Major Events in KODIT

Ⅴ. Financial Statement & Management

34 Financial Statement

37 Management

38 Organization Chart

39 KODIT`s Branches

In 2019, despite the Korean Government`s proactive fiscal policy, the Korean economy experienced a slight slowdown in its growth due to internal and external headwinds such as sluggish global economy and worsening trade conditions. Facing such challenges, small and medium-sized enterprises(SMEs) were dealt a double blow from the downturn in domestic consumption and slowing export growth, coupled with lower average capacity utilization rate and inventory buildup.

Korea Credit Guarantee Fund(KODIT) made concerted efforts across the board to help SMEs weather such difficulties. First, in order to respond to the increasing uncertainties surrounding the domestic and global economic environments, KODIT provided KRW 49.1 trillion(USD 42.4 billion) in credit guarantees, a KRW 2 trillion(USD 1.9 billion) increase over the previous year. We also underwrote KRW 20.1 trillion(USD 17.4 billion) in credit insurance continuously fulfilling its role as a social safety net for SMEs.

As part of its unflinching determination to phase out the joint surety, KODIT provided new credit guarantees without any requirements for joint surety. We also expanded the eligibility of exemption for joint surety in existing credit guarantees. We strived to increase productive financing for businesses with lower credit standing but promising business results and technological competitiveness. In addition, we also reinforced our inclusive financial support by introducing the “Value Up” program, which is designed to provide an opportunity for enterprises with growth potential but experiencing temporary management difficulties.

KODIT promptly provided special-purposed guarantees for SMEs hit by Japan`s export restrictions as well as natural disasters such as forest fires and typhoons, thus remaining faithful to fulfilling its role as a safety net for Korean economy.

Meanwhile, under the aim of driving improvements in customer service, KODIT launched a non-contact and online-based platform for its credit guarantee service, thus enabling customers’ access without their visiting a branch office. In particular, KODIT became the first credit guarantee institution in Korea to allow customers to extend the maturity of their credit guarantees by signing online guarantee agreement.

In recognition of such organization-wide efforts, KODIT achieved Grade A in seven years in the Public Institution Management Performance Evaluation and received several external awards, including the Commendation from the Chairman of the Board of Audit and Inspection and the Office for Government Policy Coordination Minister Award.

So far this year, the continuing effects of global headwinds from the Coronavirus disease(COVID-19) outbreak have dampened domestic consumption, production and investment activities, with fears for an economic recession looming large. Against this backdrop, SMEs have been the hardest hit by the pandemic amongst the sectors in the real economy. All in all, it is projected that SMEs will increasingly face unprecedented challenges in the weeks and months, if not years, ahead.

In order to mitigate the fear of downturns in real economy from the COVID-19 and accordingly resolve SMEs` financial difficulties, KODT promptly supported credit guarantees worth KRW 1.1 trillion(USD 950 million). In particular, we provided credit guarantees of KRW 300 billion(USD 259 million) to the Daegu Metropolitan city and North Gyeongsang province, the most COVID-19 affected areas in Korea, thereby preemptively responding to an economic downturn at the local level.

We provided primary collateralized bond obligations(P-CBO) guarantees worth KRW 1.7 trillion(USD 1.5 billion) to not only SMEs but also financially strapped middle-market and large enterprises damaged by the COVID-19 pandemic. To this end, this will come to curb the widespread market uncertainties in the corporate bond market. Furthermore, by easing the eligibility requirements for credit insurance, we will promptly underwrite enterprises incurring losses due to the COVID-19 outbreak and thus help prevent their risk of insolvency.

KODIT will also take the initiative in creating social value, as the inherent role of a public financial institution. To achieve this, we will implement the social enterprise assessment system that we developed last year, a first for a policy-based financial institution, to relevant institutions, thereby promoting the system as a standard platform for social financing evaluation.

KODIT will strive to practice social responsibility management through sharing opportunities of innovative growth with young start-up founders. As part of such our endeavors, we will open the Mapo Innovation Town, called Front 1, which is currently under construction, as a venue where startups can freely explore their innovation without any fear of failure.

Besides, aiming to lead the paradigm shift with 5G, AI and Big Data, KODIT will build a customer-centered financial platform this year to launch support programs dedicated to core service industries such as FinTech. At the same time, we will develop an exclusive product that enables customers to apply non-contact services from credit guarantees to loans without visiting a branch office.

Keeping up with such major trends, KODIT will build the “Big Data-based Korean PAYDEX” by combining its database and credit research expertise, thus becoming the pumping priming in promoting financial support for companies based on their future growth potential rather than their sales record.

This year marks the second anniversary of KODIT`s declaration of its new vision, “The Best Partner Promoting the Challenges and Growth of Enterprises”. To fulfill this vision, we will pull out all the stops to promote an innovative and dynamic economy, create public services based on social values and achieve sustainable growth along with customers. We look forward to your continued support and cooperation. Thank you.

Yoon Dae-heeChairman and CEO, KODIT

Message from the Chairman korea credit guarantee fund annual report 2019

1

Highlights of 2019

Economic Trends of 2019SME Trends of 2019

Highlights of 2019Economic Trends of 2019

SME Trends of 2019Overview

● Capital Fund Unit : USD billion

Total Capital Fund Capital Fund for General Guarantee

2015 2016 2017 2018 2019

4.6

3.9

4.7 4.3 4.4 4.4

3.8 3.7 3.8 3.7

● Guarantee SupplyUnit : USD billion

Total Guarantee Supply New Guarantee Supply

2015 2016 2017 2018 2019

42.4

10.2

39.6 39.8 40.9 40.5

9.3 10.2 10.2 9.7

● Default RateUnit : %

Default Rate

2015 2016 2017 2018 2019

4.03.9

3.53.6

3.3

● Recovery of IndemnityUnit : USD million

Outstanding Indemnity Recovery of Indemnity

2015 2016 2017 2018 2019

2,612

357

2,890 3,004 2,679 2,594

487 446 433 422

● Underwriting of Credit InsuranceUnit : USD billion

Underwriting of Credit Insurance Outstanding Underwriting

2015 2016 2017 2018 2019

17.4

4.3

14.1 15.5 17.0 17.4

3.2 3.4 3.7 4.1

● Approval for Infrastructure Credit GuaranteeUnit : USD billion

Outstanding Approval for Infrastructure Credit Guarantee New Approval for Infrastructure Credit Guarantee

2015 2016 2017 2018 2019

9.6

1.6

7.2 8.1 8.5 9.1

1.52.2

1.8 1.8

※ Exchange rate: ₩1,157.8/$ (BOK reporting rate of exchange as of the end of 2019)

0706

Korea Credit Guarantee Fund Annual Report 2019

Overview

Management Strategy & Risk Management

Major Performances

Financial Statement & Management Highlights of 2019Highlights of 2019

0908


Overview


Major Performances

Financial Statement & Management SME Trends of 2019Economic Trends of 2019

In 2019, the Korean economy managed to maintain a growth rate of 2.0% on the strength of expansionary fiscal policy despite external and internal headwinds such as the U.S.-China trade dispute and slowdown in the semiconductor industry.The real GDP growth rate was 2.0%, a decrease of 0.7%p from the previous year, and per capita income affected by low growth, low inflation and weak Korean won showed a downward trend for the first time in four years since 2015.Private consumption expenditures edged up 1.9% due to demographic shift caused by aging population and declining household consumption propensity caused by increasing household debt. On the other hand, capital investment fell 7.7% from a year earlier in the aftermath of the downturn in machinery capital investment. In addition, the inflation rate of the producer price index(PPI) remained unchanged from the year before due to the slowdown in crude oil price and agricultural products price.Despite buoyant industries such as automobile, biohealth and etc., exports plunged 10.3% from a year ago as a result of the sluggish recovery in semiconductor and petroleum product cost, a decrease in vessel export, and Japan`s export restrictions. Imports also fell 6.0% from the previous year as the imports of raw materials and commodities declined as a result of the reduction in domestic production and sluggish capital investment.

● GDP and Growth Rate

Nominal GDP (USD billion) Real GDP Growth Rate (%)

2000

1500

1000

500

0

3.532.521.510.50

2015 2016 2017 2018 2019

2.8 2.9 3.2 2.7 2.0

1,432 1,5861,504 1,635 1,653

● Major Economic Indices

2015 2016 2017 2018 2019

National Wealth (Nominal)

GDP (USD billion)GNI (USD billion)GNI per capita (USD)

1,4321,437

28,814

1,5041,509

29,394

1,5861,592

31,734

1,6351,640

33,434

1,6531,668

32,047

Growth Rate (Real)

GDP (%)GNI (%)

2.86.3

2.94.4

3.23.3

2.71.2

2.00.3

Price Index Rate

Producer Price Index (%)Consumer Price Index (%)

Δ4.00.7

Δ1.81.0

3.51.9

1.91.5

0.00.4

Currency Exchange Rate (KRW/USD) 1,172.00 1,208.50 1,071.40 1,118.10 1,157.80

In 2019, small and medium-sized enterprises(SMEs) were confronted with tough challenges including the enforcement of 52-hour workweek, weak domestic demand caused by the stagnant economy, Japan`s export restrictions, and the U.S.-China trade dispute.The average capacity utilization rate of SMEs marked 72.9%, a decrease of 0.5%p over the previous year. However, while the production index decreased, the inventory index climbed from a year earlier, which indicates that SMEs were faced with the worsening business circumstances and the economic recession in the domestic market.In the financial market, the central bank, Bank of Korea cut its benchmark interest rate twice in July and November of 2019 to respond to sluggish economic indicators, low consumer price inflation, and Japan`s export restrictions. It led to a decline in the interest rate on SMEs loan by 0.21%p compared with the previous year. Nevertheless, SME loans sharply expanded to USD 619 billion, a USD 41 billion increase from the year before. Yet, while SME loans showed a growth rate of 7.1%, credit guarantees for SMEs stayed at 4.5%, decreased by 0.3%p from a year earlier.

● Average Capacity Utilization Rate

Industry Average SMEs Average75

74.574

73.573

72.572

71.571

70.52015 2016 2017 2018 2019

74.5

73.5 73.4 73.472.9

71.9

73.873.5

73.873.3

● Major SME Indices

2015 2016 2017 2018 2019

Production Trend

Production Index in Manufacturing (Year 2010=100) 100.0 103.2 106.2 103.4 98.9

Average Capacity Utilization Rate of SMEs in Manufacturing (%) 71.9 73.8 73.4 73.4 72.9

SME Loans (USD billion) 483 510 546 578 619

Interest Rates on Loans (%) 3.87 3.69 3.71 3.88 3.67

Numbers of Newly Incorporated Companies 93,768 96,155 98,330 102,042 108,874

2

Vision

Risk Management System

Ethics Management & Customer Satisfaction


VisionEthics Management & Customer Satisfaction

Risk Management System

KODIT’s Effort in Stimulating the Korean EconomyEstablished in 1976, KODIT has continued its efforts to contribute to the driving force of enterprises and the balanced development of the national economy over the past 40 years. In particular, KODIT has played a pivotal role in overcoming the national crisis by responding to the rapidly worsening business environment preemptively during the Asian financial crisis in 1997 and the global financial crisis in 2008.In January 2019, KODIT established its new vision with mission : “Contribute to the driving force of enterprises and the balanced development of national economy” and set up a new vision : “The best partner promoting the challenges and growth of enterprises,” thereby becoming a leading institution for supporting SMEs. Furthermore, KODIT is making a company-wide effort to realize its core values: customer, innovation, passion, and win-win. KODIT also continues to fulfill its mission and vision by setting up its business goals: “Supply KRW 55 trillion in credit guarantees for new growth industries,” “Increase contributions to employment by 1.7 times,” and “Rank first in the integrity assessment for public institutions,” reflecting changes in business environment in domestic and foreign markets.KODIT will continue to strive for the sustainable growth of enterprises and the development of the financial industry in order to achieve its ultimate mission of enhancing the national economy.

Core values ＞ Customer Win-WinPassionInnovation

Customer`s trust Cooperative SatefyFuture ChallengeSustainabilityBusiness Policies ＞

Strategic goals ＞

Supply KRW 55 trillion in credit guarantees for new growth industries

Increase contributions to employment by 1.7 times

Rank first in the integrity assessment for public institutions

Take the Lead in Innovative and Dynamic Economy Create Social-based Public Service Achieve Sustainable Growth with Customers

Strategic tasks ＞

Set up Ecosystem for Innovative GrowthPioneer the Digital Enterprise Database Market

Help SMEs Strengthen their Self-viability in the market

Firm up its Position as a Creative Institution Build No1. Governance for Innovative Startups

and Impact Finance Establish Foundation for Creating Social Value

Maximize Efficiency with Strategic Administration Ensure Customer-centered Business Process

Innovate Safety Management, Business Operation, and Management System

Action Plan ＞ 1 Foster the core industries leading the Fourth Industrial Revolution

2 Build up a support system based on innovative growth values

3 Expand the guarantee supply for the higher-value-added cultural content industries

4 Set up a global support system for enterprises entering overseas markets

5 Establish Korea’s no. 1 data bank with a wealth of corporate information

6 Activate online credit transaction7 Develop the credit insurance system based on data8 Construct an integrated management system on

receivables9 Advance the convergence of financial support

10 Reform the insurance business foundation to maximize customer satisfaction

11 Prime the pump for activating direct financing through private investment

12 Upgrade the consulting support program

13 Enhance the support for job creation14 Expand guarantee support for social infrastructure

development15 Promote financial integration systematically16 Strengthen support for corporate restructure and

rechallenge17 Advance the support system for innovative growth18 Take the lead in impact finance19 Stimulate mutual growth for a fair economy20 Build up the environment for smooth debt collection

and re-investment21 Make a better workplace for achieving work-life

balance22 Create decent jobs and reform the personnel policy

for social integration23 Promote human rights and ethical management24 Offer job-matching services for SMEs

25 Advance the integrated risk management system26 Raise the effectiveness of debt collection27 Manage the organization and budget effectively28 Step up efforts to expand capital funds29 Develop customized systems, services, and

processes30 Upgrade the management system to maximize

customer satisfaction31 Promote public relations activities to touch the

hearts of people32 Push ahead with autonomous innovation together

with customers33 Serve as a specialized institution for credit

investigation and evaluation34 Intensify the safety management and the internal

audit systems35 Improve the performance management system36 Accelerate digital innovation and advance the ICT

services

Contribution to the Driving Force of Enterprises and

the Balanced Development of National Economy

VisionThe Best Partner

Promoting the Challenges and Growth of Enterprises

Mission

KODIT`s future by accomplishing its New Vision

Leading Institution in Innovative

Growth

Core Institution in Policy-based

Financing

Sustainable Management

System

Business Structure focused on Social

Value

Achieve Innovative

GrowthSMEs Convergence

& Integration

Platform for Start-up and Growth

Big Data

Credit Guarantees

Credit Insurances Investments Consulting

Expansion of Social

Value

Managing organization creatively

Digital based support system

Customer and public interest-centered business process

Supporting business

proactively

Prompt and fair business

management

Meeting society and

customers` demand

Leading Policy and

Public-based Services

Mutual Growth Inter-Korean Economic Cooperation Innovative Startups Impact Financing

Win-Win Cooperation Work-Life Balance Human Rights and Ethics Job Creation

Advanced organizational

culture

Strengthening the risk management

Business administration based on performance

Intensifying policy-based support

Maintaining financial soundness

1312

Overview


Major Performances

Financial Statement & Management


VisionVision

Ethics ManagementKODIT defines its ethics management as “System Reform” and “Educational Activities” to practice transparent and accountable management and spread anti-corruption culture. It will make KODIT a trustworthy public institution that can flexibly respond to changing circumstances and fulfill its duties with a strong sense of social responsibility. KODIT provided ethics courses to its employees to develop their sense of ethics and morality and carried out autonomous system improvement to promote an environment that is free of corruption. It also encouraged its customers to contribute to KODIT’s transparent and ethical operation by sharing its policies on ethics and corruption reporting systems.

Customer SatisfactionKODIT carried out a variety of campaigns such as the “Best Shinbo Campaign” (2009~2012) and “Cham Cham Cham” (2013~2017) to promote a customer satisfaction mindset. As a step further, since 2018, KODIT has conducted the “Gong Gam Shin bo,” a new campaign to get much closer to customers and level up the standard of customer satisfaction. The campaign proved its effectiveness, as KODIT received more favorable evaluations on its customer services.Additionally, KODIT carried out the “CS Clinic,” “CS Training,” and “Online Training Program” to enhance the CS techniques and mind-set of its employees. KODIT also introduced in-depth interview with customers to analyze the major complaint factors and come up with solutions, which has contributed to spreading KODIT’s customized services.KODIT organized the “Customer Advisory Panel” composed of representatives from guaranteed firms, practitioners at related organizations, and experts in various fields to reflect diverse opinions on its business plans. It also conducts a customer satisfaction survey that regularly measures its customer satisfaction and find out any inconvenience that customers are experiencing. It also operates the “Dream Call Service” that collects and responds daily to customers’ suggestions and complaints.Moreover, KODIT reinforced its customer-friendly services by reflecting the results of its customer service inspections that are constantly conducted based on the “Customer Service Charters”.

OutcomesKODIT has received the highest rating for four consecutive years from the assessment of customer satisfaction on the group of quasi-governmental organizations conducted by the Ministry of Economy and Finance. It also has received the ‘A’ rating for 5 consecutive years since the Ministry of Economy and Finance adopted relative evaluation system on customer satisfaction in 2014.

KODIT has built up an integrated risk management system to manage the underlying assets efficiently and help make better policy decisions. Through this system, KODIT can flexibly deal with challenges from the ever-changing economic environments.

Integrated Risk Management System KODIT’s integrated risk management system is composed of the Credit-VaR system to measure credit risks, the operational multiple management system to manage liquidity risks, and the operational risk management system to control internal and external operational risks. KODIT is taking advantage of this system to control the risks and manage its guarantee portfolio effectively. It has also established step-by-step strategies for responding to crisis incurred by rapid changes in the economic environments.

Credit RisksCredit-VaR System

Liquidity RisksOperational Multiple Management

System

Operational RisksOperational Risk Management

Efficient Management of Capital Funds and Operational Multiple

Scenario Analysis

RiskAssessmentPrediction

Risk Diversification

Early Warning

Portfolio Management

IntegratedRisk

ManagementSystem

Credit Risk Management (Credit-VaR system)KODIT quantitatively measures and manages the degree of expected or unexpected losses that may arise within a year through the Credit-VaR system. With the system, KODIT effectively controls credit risk by analyzing the core indicators such as the default rate and the risk coverage ratio.

In 2018, KODIT newly designed its credit rating system to reflect the recent default trend and evaluation techniques. It operates three types of credit rating models that consider each enterprise’s characteristics.

KRS-C (KODIT rating system for corporate)KRS-C evaluates the credit standing of general enterprises that have been in business for more than 7 years

KRS-S (KODIT rating system for start-up)KRS-S evaluates the credit standing of startups that have been in business for less than 7 years

KRS-I (KODIT rating system for insurance)KRS-I is the specialized rating system for underwriting credit insurance, checking the credit standing of insurance policy holders and buyers.

Liquidity Risks Management (Operational Multiple Management System)KODIT keeps the operational multiple and liquidity coverage ratio at the optimal level to enhance its financial soundness and response to changes in risk factors by the economic fluctuation. KODIT constructed the business failure prediction model based on a macro environment analysis and a management system for total amount of guarantee. It enables KODIT to predict the default amount and the increase in guarantee more accurately and thus securely manage capital fund for various changes in business environments.

Operational Risks Management (Operational Risk Management System)Operational risk management system classifies operational risks into the sectors of business handling, IT risks, legal issues, and external reputation. KODIT constantly monitors and manages these operational risks that may lead to non-financial losses as well as financial ones.

1514

Overview


Major Performances



Risk Management SystemEthics Management and Customer Satisfaction

3 MAJOR PERFORMANCE

Capital Fund

International CooperationStartup Support Service

Credit Guarantee Service

Major Improvements in Guarantee System & New Products

Equity Investment

Default & Debt collection Credit Insurance Service

Infrastructure Credit Guarantee Service

2019 Major Events in KODIT

Capital FundCredit Guarantee Service

Major Improvements in Guarantee System & New ProductsEquity Investment

Default & Debt collection

Credit Insurance ServiceInfrastructure Credit Guarantee Service

Startup Support ServiceInternational Cooperation

2019 Major Events in KODIT

The capital fund of KODIT is the basis for supply of credit guarantees and subrogation payment under credit guarantee system. It is composed of contributions from the government, financial institutions and enterprises, as stipulated in the Korea Credit Guarantee Fund Act.

KODIT may receive the government contributions irregularly under the yearly budget plan of the government after the review of the guarantee operational plan and economic outlook. And financial institutions are required to make contributions with not exceeding the annual rate of 0.3% on their total amount of corporate loans, which are stable sources of fund for KODIT. Other sources of fund are special contributions provided under individual agreements with financial institutions, large enterprises and local governments.

With contributions of USD 130 million from the government and USD 850 million from financial institutions and corporations in 2019, the underlying asset of KODIT reached USD 4.6 billion at the end of 2019.

● Accumulated Contributions to KODIT

(Unit: USD billion)

30.0

25.0

20.0

15.0

10.0

5.0

-2015 2016 2017 2018 2019

Special Contribution Financial Institution Covernment

1.21.1

11.9

9.8

1.0

11.2

9.6

1.2

12.6

9.9

1.3

10.2

1413.3

10

The operational multiple, calculated by dividing the outstanding credit guarantee by the capital fund as underlying asset, is an important measure that indicates the capability to provide guarantees in accordance with economic conditions and the liquidity to deal with subrogation claim of financial institutions. “The Article 25 of the Korea Credit Guarantee Fund Act” prohibits the operational multiple from outweighing 20 times, which remains at 9.8 times as of the end of 2019.

● Capital Fund and Operational Multiple of last 5 years

(Unit: USD billion, Times)

Classification Total Outstanding Guarantee(A) Capital Fund(B) Operational Multiple(A/B)

2015 42.5 4.7 9.0

2016 42.8 4.3 9.9

2017 43.9 4.4 9.9

2018 43.6 4.4 9.9

2019 45.1 4.6 9.8

In 2019, KODIT established new industry support system to boost the economy in the face of the slump due to increasing global uncertainty and slowdown in growth engine. It also sets a basic objective of “Vitalizing the economy through strengthening economic fundamental and supporting innovative growth” to expand its inclusive financial support and has placed a top priority on the following three key goals: (1) Establish an ecosystem for innovative growth, (2) Enhance the role of policy-based finance and drive social value, and (3) Innovate customer-centered business process.The amount of general credit guarantee was USD 40,787 million, increased by 1,447 million from a year earlier. The amount of special guarantee for market stabilization decreased by USD 1 million while the issued amount of P-CBO increased by USD 9 million. The outstanding total guarantee in 2019 was USD 45,099 million, increased by USD 1,455 million and the newly supplied general guarantee amount was USD 10,200 million, decreased by USD 458 million from a year earlier.

● Outstanding Guarantee

(Unit : USD million)

Classification 2018(A) 2019(B) Change(B-A)

General Guarantee 39,340 40,787 1,447

P-CBO Guarantee 4,301 4,310 9

Special Guarantee for Market Stabilization 3 2 -1

Guarantee on Bridge Loan 3 2 -1

Construction P-CBO Guarantee - - -

Market Stabilization P-CBO - - -

Total Guarantee 43,644 45,099 1,455

By Type of GuaranteeKODIT offers 11 types of general guarantees. In effect, 6 types of general guarantees are in operation. Outstanding guarantee for bank loans at the end of 2019 was USD 35,906 million or 88% of the total outstanding guarantee.

● Outstanding General Guarantee by Type



Guarantee for Bank Loan 34,097 35,906 1,809

Guarantee for Payment Warrant of Bank 195 208 13

Guarantee for Corporate Bond 0 0 0

Guarantee for Tax and Duty 0 0 0

Guarantee for Commercial Bill 122 95 Δ27

Guarantee for Loans fromNon-banking Financial Institution 2,546 2,328 Δ218

Guarantee for Lease 0 0 0

Guarantee for Surety bond 99 56 Δ43

Guarantee for Transaction Liability 2,279 2,194 Δ85

Guarantee for Acceptance of Trade Bill 0 0 0

Guarantee for Secured Loan 0 0 0

Total Amount 39,338 40,787 1,449

1918

Overview


Major Performances



Capital Fund Credit Guarantee Service

By Type of IndustryKODIT has provided credit guarantees for all industries in principle since February 1998. However, KODIT focuses more on industries that have a greater ripple effect and consequently higher contribution to economic growth. The outstanding guarantee of manufacturing industry and wholesale & retail industry respectively accounted for 37.6% and 35.4% of the total amount in 2019.

● Outstanding General Guarantees by Type of Industry

(Unit : ea, USD million)

Classification2018 2019

No. of Enterprises Amount No. of Enterprises Amount

Manufacturing 62,085 15,195 61,304 15,333

Wholesale & Retail 87,631 13,942 87,894 14,434

Construction 15,752 2,488 15,463 2,486

Business Service 30,171 5,080 32,454 5,683

Others 12,249 2,635 12,622 2,852

Total Amount 207,888 39,340 209,737 40,788

Guarantees for Priority Sectors KODIT has set startups, exports, facilities investment, the Fourth Industrial Revolution industries, and job creation as “priority sectors” to comply with government policies, which especially emphasizes the enhancement of support for the start-up and the Fourth Industrial Revolution sectors. Guarantee supplies for the priority sectors increased by USD 3,086 million from a year earlier.

● Guarantee Supplies for Priority Sectors



Startups 15,754 16,284 530

Exports 10,318 11,049 731

Facilities investment 3,920 4,152 232

Fourth industrial revolution industries 9,187 10,011 824

Job creation 3,994 4,763 769

Total Amount 43,173 46,259 3,086

P-CBO GuaranteesKODIT introduced the P-CBO guarantee scheme in July 2000 in order to stabilize capital market and business management of SMEs which faced serious difficulties in raising business funds in corporate bond markets due to corporate restructuring process and the financial sectors after the Asian financial crisis.Untill 2004, KODIT actively expanded the provision of P-CBO guarantees, but from 2005 to 2007 it only rolled over existing P-CBO guarantees at their maturities.Since then, KODIT renewed the provision of P-CBO guarantee to overcome the global financial crisis in 2008 by helping small and medium sized enterprises smoothly secure business fund on direct financial market. And finally KODIT has made P-CBO Guarantee as one of main businesses to improve the financial liquidity of SMEs by revising the Korea Credit Guarantee Fund Act in May 2009.

● P-CBO Guarantees

(Unit: ea, USD million)

Classification 2014 2015 2016 2017 2018 2019

New Supply of P-CBO Guarantees 95 121 618 723 430 191

No. of Enterprises 103 124 681 614 419 130

Value-oriented evaluation (KOVAS) KODIT has expanded its evaluation based on value-oriented method called KOVAS (KODIT Valuation System). When KODIT determines approval of guarantee supply, it relies on not only tangible assets of an enterprise but also the ability to generate profit that will lead to continuous growth and development. KOVAS was introduced in September 2010 to assist enterprises with growth potential and profitability despite their low level of credit ratings at the point of evaluation. KODIT has provided guarantees worth USD 26,727 million to 36,063 SMEs based on their future value using KOVAS since 2011.

● Guarantee Provided using KOVAS


Classification 2011 2012 2013 2014 2015 2016 2017 2018 2019 Total

No. of Enterprises 901 1,064 2,209 4,037 4,949 6,011 6,182 5,685 5,025 36,063

Amount 748 948 2,193 3,227 4,298 4,404 3,891 3,400 3,617 26,727

2120

Overview


Major Performances



Credit Guarantee Service Credit Guarantee Service

Improvements in Guarantee SystemIn 2019, KODIT placed a great emphasis on promoting innovation-led growth to help the domestic economy recover, pulling out of the recession in core industries and weak domestic demand. It also took the lead in supporting social economy to achieve mutual prosperity.

● 2019 Major Improvements Enacted and Amended

Purpose Enacted and amended Details

Support economic vitalization policy

Activated guarantee support for enterprises extending their businesses abroad

• Offered prompt guarantee support by operating credit review and due diligence flexibly

Set the conditions to activate support for shipbuilding and its materials industries

• Made business agreement with three of enterprises in shipbuilding industry to support its cooperative firms

Provided liquidity support for SMEs exporting their products abroad

• Provided prompt guarantee support for enterprises experiencing temporary management difficulties due to Japan`s export restrictions

Enacted guarantee products to promote clean environment industry

• Promoted enterprises improving air quality and provided financial support for clean environment industry

Introduced guarantee products for raw materials, parts and equipment industries

• Offered phased support for enterprises in materials, parts and equipment industries in response to Japan`s export restrictions

Set up ecosystem for innovative

growth

Improved a guarantee system for enterprises operating their smart factory

• Activated construction of smart factory by introducing aligned products with smart factory business management system

Introduced a guarantee system to support cultural industry systematically

• Launched “Cultural Content Completion Guarantee” and a program to support cultural content enterprises extending their businesses abroad

Expanded the scope of enterprises on maximum limit of credit guarantee

• Expanded the credit guarantee for new-growth-engine industries and innovative companies to implement innovative growth and scale-up support policies

Introduced a guarantee system to vitalize intellectual property(IP) finance

• Enacted a new guarantee system aligned with IP-based loans and set a standard for technology value evaluation

Spread social values

Support low-interest rate loan for micro-enterprises and self-employed business

• Provided prioritized guarantees for promising startups and micro-enterprises

Enacted customized guarantee programs for self-employed business

• Made business agreement with 17 banks to strengthen the economy for middle class through guarantee supports using financial industry association`s social contribution funds

Enacted a social-startup guarantee product• Contributed to creating social value such as

job creation through supporting social venture companies

Expanded the eligibility of exemption for joint surety in existing credit guarantees

• Made additional business agreement with banks to exempt joint surety in existing credit guarantees and amended its system

Developed a social enterprise assessment system

• Established foundation to activate social finance by providing the social enterprise assessment system

Guarantee-aligned Equity InvestmentIn 2005, a “Guarantee-aligned Equity Investment” was implemented under the government’s plan for “Comprehensive Measures to Support SMEs’ Competitiveness” introduced in July 2004. However, KODIT stopped providing new equity investment as the National Assembly and the Board of Audit and Inspection pointed out the lack of legal ground for the investment in 2011.In 2014, KODIT restarted the guarantee-aligned equity investment after the revision of the Korea Credit Guarantee Fund Act in May 2013. It was introduced to improve financial structures with direct investment for SMEs which have high growth potential but face difficulties to ensure available funding in private investment markets. KODIT invested in 55 SMEs with worth of USD 48 million from the start of the investment in 2005 to 2010. Since the guarantee-aligned equity investment became an officially authorized business in 2014, KODIT has invested worth of USD 193 million in 310 SMEs until 2019. At the end of 2019, the balance of investment is USD 164 million to 284 SMEs.

● Guarantee with Investment Option


Classification ’05 ’06 ’07 ’08 ’09 ’10 ’11~’13 ’14 ’15 ’16 ’17 ‘18 ‘19 Total Balance

Investment amount 6 9 9 9 9 6 - 21 22 30 35 34 51 238 164

No of enterprise 8 9 10 9 11 8 - 27 30 45 62 61 85 365 284

In 2014, KODIT stated it would review the introduction of an investment-option guarantee in accordance with the “Credit guarantee system improvement for SMEs” led by the government. And as a follow-up on the “New guarantee system buildup for SMEs,” KODIT first adopted the investment-option guarantee service in 2015 and has been providing the guarantees for SMEs since 2016.

The Investment-option guarantee, as a comprehensive service for financing and investment, helps startups secure business funds in a timely manner and improve their financial soundness. KODIT provided SMEs with guarantees of USD 27 million for 92 enterprises in 2016, USD 26 million for 84 enterprises in 2017, USD 54 million for 158 enterprises in 2018, and USD 37 million for 123 enterprises in 2019.

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Overview


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Major Improvements in Guarantee System & New Products Equity Investment

The default rate in 2019 stood at 3.3%, which was a decrease of 0.3%p from a year earlier.

● Five Year Trends of Default & Default Rate

Unit : USD million, %

Default Default Rate

4.03.9

3.5 3.6

1,3441,417 1,422 1,328 1,3973.3

1,600

1,400

1,200

1,000

800

600

400

200

0

4.6

4.4

4.2

4

3.8

3.6

3.4

3.2

32015 2016 2017 2018 2019

Debt Collection ManagementManaging the right to indemnity is an important part of KODIT’s business to keep financial stabilization by collecting debts, which is one of the largest sources of revenues along with guarantee fees. In the past, KODIT put an emphasis on coming up with effective measures to improve the recovery rate of debt collection.However, in an era of increased social awareness of supporting unviable enterprises and owners, KODIT strives to come up with measures to help them rebound from the business failures.In 2019, the amount of subrogation payment was USD 1,356 million, USD 29 million increased from a year earlier. Gross subrogation rate and net subrogation rate were 3.3%, 2.7% respectively.The condition for debt collection was not favorable by the continued economic downturn, and it deteriorated debtor’s payment capability. KODIT continued its effort to maximize the amount collected through debt adjustments and to improve the efficiency of debt collection management such as expansion in real-time debtor credit information, etc. Total debt collection in 2019 was USD 357 million.

● Performance of Debt Collection

(Unit: USD million, %)


Outstanding General Guarantees(a) 39,340 40,787 1,447

Default(b) 1,397 1,344 53

Default rate(b/a) 3.6 3.3 0.3

Net Subrogation(c-d)(Net Subrogation Rate, (c-d)/a)

1,023(2.6)

1,102(2.7)

79(1)

Subrogation payment(c) 1,327 1,356 29

Debt collection(d) 304 254 50

Total Collection 422 357 65

*Excluding P-CBO Guarantees

KODIT introduced credit insurance service in accordance with Article 61, Section 2 of the SME Promotion Act in 1997. The service has played as the social safety net by preventing SMEs’ chained bankruptcies caused by nonpayment of buyers. It also has helped SMEs enhance their survivability and competitiveness, thereby contributing to market-friendly business environment.

KODIT introduced “Bill Insurance” in 1997 and “Receivables Insurance” in 2004 in order to protect SMEs from financial difficulties arising from dishonored commercial bills or non-payment of account receivables. Since 2015, almost all business types have become eligible to apply for insurance service. In addition, KODIT established 10 insurance centers and 2 insurance payment centers to ensure efficient and professional process of insurance service.

In 2019, KODIT improved its credit insurance service by expanding the maximum limit of credit insurance to the same company, amending credit insurance service to a customer-centered system, easing the middle-market corporations` eligibility for credit insurance, and reducing costs and financial burdens on SMEs. We also introduced a new credit insurance product(B2B Plus+ Credit Insurance) and implemented non-contact and online-based insurance products fulfilling its role as a policy-based financial institution.

PerformanceThe underwriting amount has increased continuously since the introduction of receivables insurance in 2004. Meanwhile, KODIT underwrote credit insurance up to USD 17,399 million, decreased by about 0.08% from a year earlier.

● Performance of Credit Insurance Service

(Unit: USD million)

Classification 2015 2016 2017 2018 2019

Total Underwriting Amount 14,058 15,536 17,013 17,413 17,399

Corporate Bill Insurance 11 5 4 4 1

Account Receivables Insurance 14,047 15,531 17,009 17,409 17,398

No. of enterprise 13,629 15,508 15,017 14,368 14,713



Outstanding Underwriting 3,151 3,443 3,676 4,059 4,338



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Major Performances



Default & Debt collection Credit Insurance Service

Korea Infrastructure Credit Guarantee Fund(KICGF) was established in August 1994, under the provisions of the ‘Act on Public-Private Partnerships in Infrastructure.’ Initially, KICGF was operated by three institutions : Korea Development Bank(KDB), Korea Technology Credit Guarantee Fund(KOTEC), and Korea Credit Guarantee Fund(KODIT). Later, in January 1999, KODIT took over the funds of the other two institutions and became the sole operator of KICGF. KICGF intends to raise and manage the fund, research the public private partnership(PPP) development plans, issue the letter of guarantee, and exercise the rights of indemnity. The objective of Infrastructure Credit Guarantee is to help private investment corporations obtain funds for facility construction. Infrastructure Credit Guarantee Service has played a significant role in securing the financing of private investment corporations that lack the collateral for loans and facilitating private investments through PPP.

● Framework

Balanced land development

National lifeimprovement

Korean economic

growth

Facility construction(Roads, Railways,

Harbors, etc.)

Private investment corporations

(Concessionaires)

Infrastructurecredit guarantee

fund

Guarantee support Bank, etc.Fund supply

Guarantee ApprovalKODIT facilitated total of 7 projects with 12 cases worth about USD 1,563 million in 2019 to project operators that experienced difficulties in financing due to the sluggish domestic construction industry.

● Performance of Infrastructure Credit Guarantee

(Unit: USD million)

Classification 2015 2016 2017 2018 2019

New Guarantee Approval 1,540 2,237 1,752 1,799 1,563

Outstanding Approval 7,157 8,061 8,511 9,115 9,635

Outstanding Guarantee 3,440 4,067 5,252 5,486 6,129

No. of new cases 12 10 8 11 7

•Approved Cases : Roads 5 cases (USD 648 million, Oksan – Ochang Expressway, etc.), Railways 4 cases (USD 570 million, New-Ansan Line Double Track Railway, etc.), Bridge 2 cases (USD 345 million, Busan New Port construction phase, etc.)

Capital FundThe capital fund for KICGF reached USD 693 million by the end of 2019, an increase of USD 23 million compared to the previous year. As of the end of year 2019, the government has contributed USD 442 million, which have seen accumulated profits of USD 246 million.

● Capital Fund & Operational Multiple of Infrastructure Credit Guarantee

(Unit: USD million, Times)

7,157

595

9,635

693620

8,061

641

8,511

670

9,115

12.04

12.99

13.29

13.61

10,000

9,000

8,000

7,000

6,000

5,000

4,000

3,000

2,000

1,000

0

14.5

14

13.5

13

12.5

12

11.5

112015 2016 2017 2018 2019

Oustanding Approval Capital Fund Operational Multiple

13.9

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Overview


Major Performances



Infrastructure Credit Guarantee Service Infrastructure Credit Guarantee Service

KODIT has been operating the “Comprehensive Support System for Startups” since March 2008. It contributes to a job creation through active establishment and growth of startups. In January 2017, KODIT newly established the “4.0 Start-up Department” at its headquarter. The department specializes in support for start-ups. And 8 business branches have been set up across the nation to provide the comprehensive services for start-ups including credit guarantees, investment, credit insurance, accelerating, and consulting. Furthermore, it is currently operating 3 start-up incubators called the “Start-up Dream Center”: two in Seoul and one in Busan.

“Start-up NEST”: A new platform for the growth of start-upsKODIT developed a platform for nurturing startups. It is called “Start-up NEST(New Expandability Start-up Total Platform” offering startups comprehensive support including financial and non-financial services. Start-up Nest is an integrated one-stop system that consists of four steps: Selection of promising startups, Accelerating, Financial support, and Growth support. It focuses on fostering startups to reach a specific growth stage through a variety of services such as investments, credit guarantees, consulting, mentoring, technology advisory, and M&A consulting. As of the end of 2019, KODIT selected 460 NEST enterprises and provided USD 112 million credit guarantees and USD 8 million direct investment. At the same time, it succeeded in attracting USD 33 million private investment.

● Start-up NEST Support System(4 steps support)

Step Outline Main Content

Selection of target

Candidates Education Selection

• (Candidates) Open recruitment for startups with growth potential

• (Education) Pre-NEST education for NEST candidates

• (Selection) Final selection by NEST Evaluation Committee

Accelerating

Networking

Consulting

Mentoring

Information

Level UP

• (Consulting) Consulting for growth strategy establishment

• (Mentoring) Learn successful strategies from mentor group

• (Networking) On-and off-line community and multilateral consultative organization

• (Information Offering) Advisory service in law, tax affairs and accounting

Financial support

Crowd Funding

Credit insurance

Private Investment

Credit guarantee

Guarantee-aligned Equity

Investment

Financial support• (Credit Guarantee) Customized guarantees

in consideration of the characteristics of the NEST companies

• (Investment) Direct investment, Support for private investment attractions from venture capital firms

Support for growth Arrangements

with Conglomerate

Technology AdvisoryMarketing Overseas

ExpansionPlace to Business

Support for growth• Customized support tailored to growth

stages - Overseas Expansion / Marketing / Technology Advisory / Place to Business / Arrangements with Conglomerate / Networking

● Operating Performance of “Start-up NEST”

Classification

Consulting·Mentoring Credit Guarantee Investment

Joint support with other institutionsPre-NEST

education Accelerating CreditGuarantee

KODIT(Guarantee-aligned

Investment)Private

Number of enterprises & cases 920 460 384 21 105

510Amount

(unit : USD million) - - 112 8 33

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Overview


Major Performances



Startup Support Service Startup Support Service

KODIT has closely cooperated with credit guarantee institutions abroad, international organizations and developing countries. It participated in various international conferences to find ways to improve its system and share its best practices in the international arena. It has also continued to provide policy consultations to developing countries to support their development of SME financing.

1) Strengthening global networksIn 2019, KODIT participated in the annual meetings organized by the International Monetary Fund(IMF) and the World Bank(WB), the Asian Development Bank(ADB), the Asian Credit Supplementation Institution Confederation(ACSIC), and the International Council for Small Business(ICSB). Thanks to these activities, KODIT could share its experiences in operating credit guarantee schemes and construct the cooperative channels with international organizations. Through working-level councils, KODIT also discussed practical topics in regards to guarantee operations and strengthened the cooperative relationships with the Credit Guarantee Corporation of Tokyo(CGCT), the Small and Medium Enterprise Credit Guarantee Fund of Taiwan(SMEG), the Thai Credit Guarantee Corporation(TCG), and the Perusahaan Umum Jaminan Kredit Indonesia(Jamkrindo).

● Working-Level Councils

Activity Main content Host country

30th Working-Level Council with CGCT (Japan)

• Startups support system, Corporation business consulting, Performance management system Japan

23rd Working-Level Council with SMEG (Taiwan)

• Guarantee products, Debt collection, Consulting for SMEs regarding accounting systems and financing Taiwan

15th Working-Level Council with TCG (Thailand)

• Credit rating system, Management of distressed guarantees, Non-financial services Korea

5th Working-Level Council with Jamkrindo (Indonesia)

• Risk based guarantee fee, Risk management system, Training and education system Korea

2) Knowledge Sharing Program and Overseas Cooperation ProjectSince 2007, KODIT has been actively participating in the Knowledge Sharing Program(KSP), an international cooperation program run by the Korean government to share its experience with partner countries. It has provided policy consultations on the establishment and improvement of credit guarantee schemes based on its operational experience and expertise. The partner countries include Vietnam, Cambodia, Kazakhstan, Ghana, Mongolia, Myanmar, and Jordan. In 2019, KODIT joined in the Honduras KSP and offered policy consultations on activating credit guarantee systems and improving management supervision. In addition, KODIT participated in writing ‘2019 Global Knowledge Sharing’, providing solutions to the challenges each country faced and protocol to settle credit guarantee schemes in phases.Meanwhile, KODIT offered workshops on Korea’s credit guarantee schemes and KODIT’s performance to 80 foreign delegates though seven presentations in 2019.

Month Details

January 31: Made business agreement on special financial support for micro-enterprises and self-employed business

March 12: Held “The 1st KODIT Head Officer Meeting”15: Held the launching ceremony for “Policy-based Finance for Innovative Growth Council”

April9: Held the business conference for Honduras Knowledge Sharing Program(KSP)17: MOU for “The 1st Intellectual Property Finance Forum(IPFF)”24: Made business agreement on financial support for venture startups and IP finance

May

3: Attended “The 52nd Asian Development Bank(ADB) Annual Meeting”10: Attended “The 2019 Finnovate Conference”21: Made business agreement on financial support for micro-enterprises experiencing management

difficulties

June

4: Held “The 2019 KODIT Press Conference“10: Held the groundbreaking ceremony for the Mapo Innovation Town13: Attended “The 27th European Association of Guarantee Institutions(AECM) Annual Meeting”21: Attended “The 64th International Council for Small Business(ICSB) Annual Meeting”25: Held the Working Level Council with the Thai Credit Guarantee Corporation(TCG)

July2: Held the launching ceremony for “U-CONNECT”25: Hosted the workshop with the Thai Development Research Institute(TDRI) and the Office of

Small and Medium Enterprise Promotion(OSMEP)

August13: Held “The 2nd KODIT Head Officer Meeting”27: Held the Working Level Council with the Perusahaan Umum Jaminan Kredit Indonesia(Perum

Jamkrindo)

September4: Attended the business agreement ceremony for Korea-Myanmar Economic Cooperation10: Attended “Indonesia-Korea Financial Cooperation Forum”26: Attended “International Public AMC Forum(IPAF)”

October

10: Attended the “The 2019 SME Finance Forum(SMEFF)”18: Attended the “The 2019 International Monetary Fund(IMF) and the World Bank(WB) Annual

Meeting”28: Attended “The 2019 Asian Credit Supplementation Institution Confederation(ACSIC) Annual

Meeting”

November 28: Attended “The 2nd Intellectual Property Finance Forum(IPFF)”28: Attended the Korea-Vietnam Prime Minister Meeting

December10: Attended “The 6th International Financial Cooperation Forum”16: Held ISO22301 Certificate Awarding Ceremony19: Made business agreement with National Information Society Agency(NIA)

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Overview


Major Performances



International Cooperation 2019 Major Events in KODIT

4

Financial Statement

ManagementOrganization Chart

KODIT`s Branches

Financial StatementManagement

Organization ChartKODIT`s Branches


Credit Guarantee Balance SheetUnit : USD million

2019 2018

Current Asset 5,039 5,110

Cash and Deposits 2,140 2,794

Marketable Securities 2,192 1,482

Subrogation Rights 548 664

Others 160 170

Fixed Asset 1,938 1,643

Long-term Deposits 631 497

Long-term Securities 795 660

Investments 1 1

Tangible Assets 412 385

Others 100 100

Total Assets 6,977 6,753

Current Liabilities 326 322

Received Deposits 16 17

Deferred Revenue 279 277

Others 32 27

Fixed Liabilities 2,041 2,034

Reserves for Subrogation 1,948 1,925

Allowance for Retirement 84 76

Others 9 33

Total Liabilities 2,367 2,356

Total Capital Funds 4,610 4,397

Total Liabilities & Capital Funds 6,977 6,753

Credit Insurance Balance SheetUnit : USD million

2019 2018

Current Asset 350 373

Cash and Deposits 339 361

Others 11 12

Fixed Asset 195 199


Securities Held to Maturity 195 186

Others 0 0

Total Assets 545 572


Accrued Expense 2 2

Fixed Liabilities 205 182

Reserves for Insurance Contract 184 162

Others 21 21

Total Liabilities 208 185

Total Capital Funds 337 387

Total Liabilities & Capital Funds 545 572

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Overview


Major Performances



Financial Statement Financial Statement

Infrastructure Credit Guarantee Balance SheetUnit : USD million

2019 2018

Current Asset 720 701

Cash and Deposits 304 470

Marketable Securities 413 224

Others 3 7

Fixed Asset 25 11


Long-term Securities 0 0

Others 0 0

Total Assets 745 712


Received Deposits 2 2

Deferred Corporate Tax 5 2

Others 0 0

Fixed Liabilities 45 38

Reserves for Subrogation 45 38

Total Liabilities 52 42

Total Capital Funds 693 670

Total Liabilities & Capital Funds 745 712

Board of PolicyThe Board of Policy decides on KODIT’s major policies through enacting essential regulations. Matters for deliberation and decision include revisions to articles of association and operational guidelines, budget compilation, and establishment of operational plans. The board consists of 12 members including the Chairman & CEO of KODIT; governmental officials from the Financial Services Commission (FSC), the Ministry of Economy and Finance (MOEF), and the Ministry of SMEs and Startups (MSS); executives from the Bank of Korea, the Industrial Bank of Korea, and other financial institutions; and representatives from the Federation of Enterprises. The board is chaired by the Chairman & CEO of KODIT. The board has regular meetings held in February and November, and extraordinary meeting in case of necessity.

Board of DirectorsThe Board of Directors deliberates on significant issues related to the operation of KODIT following the articles of association and operational guidelines. The Board of Directors resolve major issues concerning credit guarantee, guaranteed obligation, asset management, and investment. Members of the board include the Chairman & CEO, deputy president, senior executive directors, and senior non-executive directors. The board is chaired by the Chairman & CEO, who is appointed by the president of Korea and has the authority to appoint other executive directors. The CAE(Chief Audit Executive) nominated by the president of Korea attends board meetings. The Board of Directors meet every week on a regular basis.

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Overview


Major Performances



Financial Statement Management

Deputy PresidentChairman & CEO

The Board of Policy

• Security Control Office

• Human Resources Dept.

• Operation Support Dept.

• Customer Support Dept.

Management Support Division

• 9 Business Headquarters, 109 BranchesBranch

The Board of Directors Chief Audit

Executive

Auditing & Examination Office

Risk Management

Office

Public Relations

Office

Secreary Office

Future Strategy

Office

ManagementPlannig Division

• Plannig & Coordination Dept.

• Performance Management Dept.

• ICT strategy Dept.

Strategic Business Division

• Credit Insurance Dept.

• Corporate Restructuring Dept.

• Infra Guarantee Dept.

• Enterprise Consulting Dept.

Credit Business Division

• Credit Guarantee Dept.

• Capital Market Dept.

• 4.0 Business Start-up Dept.

• Financial Service Platform Dept.

Seoul Seobu Business Headquarters

Mapo Branch Yeongdeungpo Branch Jeju Branch Gwanghwamun Branch Namdaemun Branch Gasandigital Branch Gangbuk Branch Gangseo Branch Uijeongbu Branch Gimpo Branch Goyang Branch Pocheon Branch Seogwipo Branch Paju Branch Seoul Seobu Business Start-up Branch Mapo Business Start-up Branch

Seoul Dongbu Business Headquarters

Chuncheon Branch Dongdaemun Branch Gangneung Branch Gwangjin BranchGangnam Branch Gangdong Branch Wonju Branch Namyangju BranchTeheranno Branch Bangbae Branch Hanam Branch Sokcho BranchSongpa Branch Yangjae Branch Donghae Branch Seoul Dongbu Business Start-up Branch

Gyeonggi Business Headquarters

Suwon Branch Anyang Branch Seongnam Branch Pyeongtaek BranchIcheon Branch Osan Branch Gunpo Branch Yongin BranchHwaseong Branch Gyeonggigwangju Branch Hwaseongseo Branch Gyeonggi Business Start-up Branch

Incheon Business Headquarters

Incheon Branch Banwol Branch Incheonjungang Branch Bupyeong BranchAnsan Branch Namdong Branch Bucheon Branch Sihwa BranchCheongna Branch Siheung Branch Incheon Business Start-up Branch

Busan & Gyeongnam Business Headquarters

Busan Branch Changwon Branch Jinju Branch Sasang BranchUlsan Branch Dongnae Branch Masan Branch Gimhae BranchTongyeong Branch Saha Branch Yangsan Branch Noksan BranchUlsanbuk Branch Gimhaebuk Branch Busan Business Start-up Branch Ulsan Business Start-up Branch

Daegu & Gyeongbuk Business Headquarters

Daegu Branch Daeguseo Branch Pohang Branch Gumi BranchDaeguhyeoksin Branch Yeongju Branch Seongseo Branch Gyeongsan BranchGyeongju Branch Andong Branch Chilgok Branch Dalseong BranchDaegu Business Start-up Branch

Honam Business Headquarters

Gwangju Branch Jeonju Branch Gunsan Branch Yeosu BranchMokpo Branch Iksan Branch Suncheon Branch Gwangsan BranchGwangjucheomdan Branch Jeongeup Branch Jeonjuseo Branch Gwangju Business Start-up Branch

Chungcheong Business Headquarters

Daejeon Branch Cheongju Branch Cheonan Branch Chungju BranchSeosan Branch Daejeonjungang Branch Jincheon Branch Asan BranchJecheon Branch Boryeong Branch Cheongjuseo Branch Dangjin BranchDaejeon Business Start-up Branch

3938

Overview


Major Performances



Organization Chart KODIT’s Branches

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