ACSIC Discusses Credit
Guarantee Policies

18th ACSIC Conference held Oct. 24-27 in Seoul for the second time in 16 yrs

The 18th Conference of Asian Credit Supplementation Institution Confederation (ACSIC), hosted by Korea Credit Guarantee Fund (KCGF), wrapped up a four-day run October 24-27 in Seoul.
ACSIC member country rotates in playing host at the ACSIC conference designed to address issues such as ways of facilitating support for small enterprises and collaboration among member institutions for boosting foreign direct investments, as well as their roles in achieving their common purpose ― economic growth in Asia. KCGF hosted the 18th ACSIC Conference in 16 years following its first hosting of the second conference in 1988.
Some 130 people from 14 credit supplementation institutions from 10 countries got tighter for the conference. Kim Gyu-bok, KCGF chairman & president, delivered a speech during an opening ceremony on October 25 at the Seoul Grand Hyatt. Deputy Minister of Finance and Economy Kwon Tae-shin, Kim Cheong-taek, president of 3S Soft and Kim In-ho, president of Korea Small Business Institute (KOSBI), each gave speech during the ceremony.
A welcoming reception for the participants of the conference was held in the evening of October 24, while the second day started with a chief delegates'meeting in the morning, followed by the opening ceremony. Presentations were made during six sessions on the third day, while cultural events were held for the participants on the fourth day before a farewell party officially ended the Seoul conference.
Participating delegates were engaged in heated discussions during the conference, as the theme "Globalization of Credit Guarantee System & Its Adaptation to Changing Financial Environment"indicated the timely issue and reflected the circumstances facing credit guarantee institutions. The atmosphere of the conference seemed to be more active as Andre Douette, secretary general of ACEM, the association of European mutual guarantee institutions, also spoke about "Credit Guarantee Scheme in European Union."Douette touched on support for European SMEs and credit guarantee practices.
KOSBI President Kim said in his keynote speech Korean credit supplementation institutions should enhance specialization through concentration and choice strategies in a bid to dispel their negative image in Korea and abroad and carry out their full-fledged roles. He said they need to establish an infrastructure for self-sufficiency by differentiating guarantee premiums depending on credit ratings, guarantee amounts and guarantee period to ensure their sound financial standing, developing new guarantee products and diversifying their profit sources.
During Presentation I Session: Linkage Program of Credit Guarantee System, Krisnaraga Syarfuan, president & CEO of PT. Penjamin Kredit Pengusaha Indonesia, proposed the launch of a credit linkage program, while stressing the significance of such policies as globalization of Asian SMEs, mutual cooperation and fund raising, coupled with a rise in regional economic integration and foreign direct investments in Asia.
In Presentation IV Session: "Globalization Challenge of the Credit Guarantee System" Benel Lagua, president & CEO of Small Business Guarantee and Finance Corporation (SBGFC) in the Philippines, called for the development of a joint program among ACSIC members designed to measure the achievements of credit guarantee systems on the influence of SMEs and the whole economy. Other delegates from Japan, Malaysia and Sri Lanka each presented their country's stand on steps to overcome failures of credit guarantee system and suggestions on the future development of credit supplementation regimes.
In his appearance to Presentation VI Session: "Changes in Environment Surrounding Credit Guarantee System and Innovation Efforts of Korea,"Kim Dong-young, KCGF's executive director, unveiled KCGF's "concentration and choice strategy"aimed at reducing the overall size of credit guarantee amounts and raising the portion of credit guarantees extended to promising, innovative SMEs, saying that credit supplementation institutions in Korea are facing with a stark reality of making management substantial in the wake of changes in government policies, financial environment and their relevance with SMEs. He said KCGF plans to differentiate guarantee premiums ranging from 0.5 per cent to 4 percent, depending on SMEs, and starting next year, contribution rates imposed on financial institutions will likely be raised from current 0.3percent to 0.4 percent of outstanding credit amounts in an effort to leave them market forces. nw

Kim Gyu-bok, chairman of Korea Credit Guarantee Fund (KCGF), speaks during the opening ceremony of the 18th Conference of Asian Credit Supplementation Institution Confederation (ACSIC) held in Seoul October 25.