Individual Approach in Guarantee Assignment
In KOTEC, each and every guarantee application is reviewed by its staff members on a case by case basis. The commercial viability and associated risks of applicants' technology projects are assessed and the decision on whether to grant guarantee or not is made based upon the results of the assessment.
It is in stark contrast to the so-called portfolio approach where the guarantee decisions are not made by the credit guarantee institutions on an individual basis. The guarantee institution just sets guidelines for the guarantee eligibility in close negotiation with partnering lenders. These lenders make guarantee decisions for eligible SMEs whithout prior consultation with guarantee institution.
Use of KTRS in Guarantee Decision
To make an informed decision on whether to grant guarantee or not, a systematic assessment should be made on the eligibility, creditworthiness and commercial feasibility of business projects. KTRS, or KIBO Technology Rating System, is the tool that KOTEC employs when undertaking this due diligence.
It is a data-driven quantitative technology assessment tool whose final results are expressed as ratings on a scale of AAA~D. The KTRS help KOTEC's staff assess the technological competency, marketability and commercial viability as well as risks of technology projects proposed by the applicant SMEs. Guarantee decisions are made based on the final ratings. Applicant SMEs whose ratings are above B are eligible for the guarantee supports.
Target Group(Key clients)
According to the governing law, the guarantee resources of KOTEC should be committed to technologically innovative SMEs first and foremost. Manufacturers of low-end products, builders, service providers and wholesalers are not eligible for the credit guarantee of KOTEC.
KOTEC's target group includes the innovative SMEs engaging in the following sectors whose categories were set by the government for the efficient delivery of its innovation policy measures.
10 Next-generation Growth Engine Industries
Future Growth Industries
17 New Growth Engine Industries
New and Renewable Energy Industries
Innovative Knowledge Service and Leading Contents Industry