Guarantee Coverage Ratio

Partial Guarantee Scheme

• The partial guarantee scheme is a risk-sharing mechanism between KOTEC and participating financial institutions where KOTEC gives a irrevocable promise to pay up to a certain percentage of loan amount in the event of borrowers' defaults. Usually KOTEC's guarantees cover 85% of loan balance, and the risks associated with the remaining part of them are taken care of by the financial institutions.

Exceptional Cases

• 100% coverage
  • Guarantees for corporate bond, commercial bill and contract performance are structured to cover 100% of each debt obligation, since financial institutions are not involved in each of the guarantee scheme and there are no partners to share risk with.
• 90% coverage
  • Guarantees for key support areas including the companies with excellent technologies, companies with excellent export performance, companies engaging in the green growth industry and venture startups
  • Guarantee for export financing
• Others
  • When otherwise agreed with financial institutions: percentage as agreed
  • When otherwis specified in a special program: percentage as specified