(1) Reasons for Proposal

A. The contribution ratios under the Enforcement Rule of the Credit Guarantee Fund Act and the Enforcement Rule of the Korea Technology Finance Corporation Act are 2.25/1000 and 1.35/1000, respectively, whereas the contribution ratio under the Enforcement Decree of the Regional Credit Guarantee Foundation Act is only 0.2/1000. It is, therefore, necessary to increase the guarantee fund for the local credit guarantee foundation (hereinafter referred to as the “LCGF”) to increase the supply of guarantees to small and micro enterprises by raising the legal contribution ratio of financial companies; and 

B. This amendment aims to prevent any confusion of contributed banks by changing the range of loans eligible for contributions to the same content as the guarantee institutions for other small and medium-sized enterprises (Credit Guarantee Fund and Technology Finance Corporation). 

(2) Major Provisions

A. Raise the contribution ratio from banks, etc., (financial companies, etc. in accordance with subparagraph 4 (a) through (e) of Article 2 of the Act from 0.2/1000 to 0.4/1000 (attached Table of Article 5-3 (1))

B. Adjust the range of loans to receive contributions from financial companies in the same range as specified in the Enforcement Rules of the Credit Guarantee Fund Act and the Korea Technology Finance Corporation Act (attached Table of Article 5-3 (1))