Gyeonggi Credit Guarantee Foundation (GCGF) has been selected as the best public institution in Gyeonggi Province for 2010.
"GCGF won the top grade in an appraisal of 21 public institutions in Gyeonggi Province for 2009. In the appraisal, GCGF received an 'S' grade in institutional assessment for the fourth consecutive year and an 'S' grade in CEO estimation for the third consecutive year," said Park Hae-chin, chairman and president of GCGF.
"GCGF has extended the credit guarantee service in an aggressive manner to smaller companies to help them over financial difficulties amid the slumping economy," the top manager of the credit guarantee foundation said.
"Since I took office in January 2005, I have exerted efforts to help small and medium-sized companies and small business owners suffering from the financial pinch by extending credit guarantees," he said.
"Along with this, I made efforts to minimize occurrences of bad loans and improve the managerial balance sheet by pursuing sound assets," said Park.
"Thanks to Chairman Park's strong leadership and staff members' strenuous efforts to offer better financial services to customers, GCGF gained honors," a company spokesman said.
"We will not be satisfied by the appraisal results. By offering tailor-made guarantee services to customers continuously, we will be reborn as a top-class comprehensive credit guarantee institution leading smaller companies and small business operators," the Chairman said.
Chairman Park suggested the foundation's vision to promote the morale of GCGF staff and strengthen the organization's ability for innovation through reform of consciousness of executives and staff members.
He also introduced an achievement-based appraisal system to encourage employees to engage in well-intentioned competition and bolster the dynamic ability of the organization.
"In addition, we expanded the number of branches from five in 2005 to 19 in 2010, enabling customers to visit GCGF conveniently. The number of GCGF staff also soared from some 100 to 300 during the corresponding period," said Park.
"In addition, we carried out a survey of our customers regularly and made best efforts to satisfy their growing demands through feed-back in order to solve their difficulties in the course of using GCGF," he explained.
5S movement
"To keep the top position continuously, GCGF has been carrying out the "5S movement" through consciousness reform of executives and staff, upgraded services for customers, and strengthening of staff's professional knowledge," Chairman Park said.
The 5S movement means service, speed, satisfaction, stabilization and success.
In keeping with the management's efforts for reform, the labor union also pledged to do its best to support small and medium-sized companies and small shop owners by concluding an agreement with the management on no labor disputes, no strikes and unlimited mutual confidence.
GCGF staff members also decided to concentrate their efforts on self development through the new performance-based appraisal system and upgrade their knowledge and quality to provide customers with better service and confidence.
In a related development, they plan to make a direct visit to financial institutions, traditional markets and commercial districts in the province every week to herald GCGF's credit guarantee business, the spokesman said.
GCGF's extension of credit guarantees
Reflecting sustainable efforts for persistent in-house reform and enhancement of customers' satisfaction by the management and workers, the foundation's credit guarantee assistance soared from 373.9 billion won for 8,544 companies in 2004 to 1,818.5 billion won for 86,049 companies in 2009.
Credit guarantees extended to companies saw a steady rise from 373.9 billion won in 2004 to 590.4 billion won in 2005, 693 billion won in 2006, 762.8 billion won in 2007, 1,001.8 billion won in 2008 and further to 1,818.5 billion won in 2009.
Meanwhile, the number of companies that received credit guarantees from GCGF surged from 8,544 in 2004 to 11,740 in 2005, 13,807 in 2006, 15,155 in 2007, 33,527 in 2008 and again to 86,049 in 2009.
"In particular, the achievements of the foundation were outstanding in 2009. To effectively cope with the global economic crisis touched off by the U.S.-originated financial meltdown in December 2008, we proclaimed the emergency managerial system," said Chairman Park.
"To ride out the uneasy business environment such as global economic slowdown, the unstable exchange rate and a rise in commodity prices at that time, GCGF and its labor union concluded an agreement on emergency managerial system," he explained.
"At the same time, GCGF improved the credit appraisal system, CCRS, in such a way as to reflect the current economic situation and applied the system in a flexible manner. It also simplified documents that applicants should submit, extended the maturity of existing credit guarantees for financially ailing companies, and expanded the credit guarantee ceiling from 400 million won to 800 million won," said Park.
GCGF also improved the credit guarantee assistance system through easing of screening procedures for extension of payment guarantee and introduction of the guarantee appeal system for financially ailing small business, he said.
Active Guarantee Assistance for No Shop and Registration
One of the valuable achievements by GCGF is the guarantee of assistance for non store and unregistered retailers. Kyunggi Province brought the concept of 'Go and See on-site warranty service,' and has visited the small businesses with no shop and no registration to promote the low-interest funds. For grassroots economy stabilization, they have been keeping the warranty support which may be called political landmark. Since its foundation, it has supported 73 thousand businesses for the past 13 years. However for the year 2009, GCGF assisted 107 thousand small businesses which is noticeable accomplishment.
On the day of foundation, small businesses showed gratitude toward the regional guarantee for assistance. And Lee Myung bak, President of Korea, sent an autograph letter to Chairman Park by saying that "I consider that the right time is more important than how much in terms of support the people need."
"Noteworthy was the foundation's active credit guarantee assistance for street vendors with no registration. We allowed such small merchants with no shop and registration, who were using private loans carrying high interest rate, to get credit guarantee from GCGF," said Park.
The letter by Lee Myung bak proves GCGF has encouraged recovery from economic challenges with this active guarantee for assistance.
