Korea Technology Finance Corporation

Credit Guarantee

Guarantee Procedure

Issuance of the Letter of Guarantee
STEPS Related Activities

Branch or Website Visit : When in need of credit guarantee service, SMEs usually visit nearby KOTEC branch for consultation. The consultation can also be made online via KOTEC's website or via phone call.

Consultation : SMEs gives brief explanation on their technology projects and on the reason they need guarantee support. If the SMEs are deemed qualified after a brief qualification check, KOTEC staffers explain next steps to take including how to prepare a set of required documents.

Acceptance of Guarantee Application

Application : SMEs make formal guarantee application by submitting 'Technology Project Plan' and other supporting documents.

Acceptance : If the applicant meets eligibility criteria, the staffers in charge (evaluators) accept the application and formally proceed with next steps.

Due Diligence

Preliminary Review and Credit Check

On-site Visit : Evaluators pay on-site visit to business premises of applicants, have interviews with key management personnel and verify the facts specified in the 'Technology Project Plan' among other things.

Technology and Risk Assessment : By using KTRS, evaluators carry out an in-depth assessment on the commercial viability of the technology project and associated risks.

Guarantee Decision

Guarantee Decision: Based on the KTRS ratings, decisions are made on whether to grant guarantee and how much amount of guarantee to provide.

Issuance of the Letter of Guarantee

Guarantee Contract : KOTEC and applicant SMEs enter into a formal guarantee contract. SMEs are required to pay upfront guarantee fee and technology appraisal fee at this point.

Issuance of Letter of Guarantee: Upon completing the guarantee contract and receiving the fees, KOTEC sends its Letter of Guarantee online to prospective lenders.