Guarantee Facilities

Guarantee for Bank Loans

• This loan guarantee provides repayment guarantees for the loans extended to SMEs by commercial banks. KOTEC compensates for the losses born by the banks should the debtor fails to meet its debt obligation.

Guarantee for Payment Guarantee

• Payment guarantee refers to a financial commitment made by financial institutions at the request of buyer in connection with purchase contracts. KOTEC provides guarantee for a variety of domestic and overseas payment guarantees issued by financial institutions. In case the buyer fails to fulfill its payment obligation under the contract, KOTEC conducts its guarantee liability to the financial institutions.

Guarantee for Loans from Non-Bank Financial Institutions

• KOTEC also provides guarantees for the loans extended by non-bank lenders.

Guarantee for Corporate Bond

• KOTEC provides guarantee to bonds issued by innovative SMEs and traded in the bond market. Payment of principle and interests will be made by KOTEC should the issuer default due to insolvency or bankruptcy.

Guarantee for Purchase of Corporate debentures

• Financial institutions can receive guarantee from KOTEC in case when they purchase corporate debentures issued by innovative SMEs.

Guarantee for Commercial Bills

• Guarantee for commercial bills refers to the KOTEC's financial commitment guaranteeing issuers' payment of the amount specified on the promissory note issued in connection with a commercial transaction. Bill guarantee shall be provided for the liabilities related with the following instruments: note payable, note receivable and note receivable pledged as collateral.

Guarantee for Securing Commercial Transactions

• KOTEC's guarantee is provided as a security for the buyer's liability to pay on the account payable arising in connection with commercial transactions.

Guarantee for Contract Performance

• KOTEC extends guarantee for the SME contractors' liability to pay various deposits as a security to ensure faithful performance of the contract they enter into with government or public agencies. Included in this category are bid deposit, contract deposit, payment deposit and maintenance deposit.

Guarantee for Loans Secured by Real Estate

• This type of guarantee is provided for the loans a firm obtains by pledging its real estate assets to financial institutions as security. KOTEC's guarantee covers repayment of the part of the loan unsecured by the real estate collateral.

Guarantee for P-CBO

• In a bid to help innovative SMEs raise funds through bond market, KOTEC provides guarantees on primary collateralized bond obligations(P-CBO) undertaken by a special purpose company(SPC). P-CBO is a kind of asset-backed security (ABS) collateralized by a pool of risky junk bonds with varying degrees of risks and yields. Risks of the security holders can be mitigated by KOTEC's credit guarantee to the SPC.