Capital Fund - Korea Credit Guarantee Fund Organization

KODIT's capital funds are the financial resources prerequisite for KODIT to maintain its public trust, to provide credit guarantee, to make payment under guarantees and to earn revenue from managing the surplus capital funds. The main sources of the capital funds are the contributions from the government, financial institutions and enterprises. 

The contribution from the government is subject to change every year depending on the government's policy on credit guarantees. On the other hand, according to the Korea Credit Guarantee Fund Act (KODIT Act), all the banks in Korea have to contribute funds to KODIT. These contributions, a main systematic tool for raising capital funds, are calculated on the balances of banks for specific loans at a certain rate not exceeding 0.3% per annum.

No government contribution was made to KODIT in 2012 but the contribution from banks, large enterprises and other institutions amounted to KRW 873 billion. At the end of 2012, the total capital funds of KODIT reached KRW 6,054 billion.

The aggregate amount of outstanding credit guarantees cannot exceed 20 times the capital funds. As of the end of 2012, the leverage ratio including P-CBO guarantees was 7.5 times.