Operation - KODIT

Ceiling Amounts

Generally, the ceiling amount of general credit guarantee for a company, including its affiliates, is KRW 3 billion. Indeed, for certain types of guarantees specially designated by the Financial Services Commission, the credit line in general can be KRW 7 billion. 

Guarantee Coverage

To encourage the credit analysis capability of lending financial institutions and strengthen the financial standing of KODIT, KODIT has implemented partial coverage of credit guarantees since 1998 unless full guarantees are inevitable. Guarantees for corporate bonds, commercial bills, execution of contract and tax payment are not participated by financial institutions. Therefore, those guarantees are fully guaranteed. The portion of the risk shared by KODIT depends on the credit standing of the guaranteed company as follows.

Credit Rating	Coverage Ratio
	10 years or less *	Over 10 years
K1	70% (50%)	65% (50%)
K2	75%	70%
K3~K5	80%	75%
K6~K15	85%	80%

Note> Period of using guarantee service

Guarantee Fee

The Guarantee fee of KODIT varies according to the credit rating of the applying company within the range between 0.5% and 3.0% APR of the outstanding guarantees. Large enterprises are charged 0.5% higher fee than SMEs with a same rating. In the meantime, a fixed rate applies to certain types of guarantees.