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.
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