What is Fast Track?


superstock_456-1215_b~Fast-Track-Posters Fast track is a financing program to support superior small and medium enterprises operating in Korea, which are temporarily having financial difficulty. The government and BOK(Bank of Korea) are working on this program since last Oct. 1st.
Financial Services Commission looks around how well this Fast Track Program works, and monitors actual support of commercial banks to those companies.

Fast Track is, in other words, “the fastest route to help small companies’ crisis.”
Let’s have a look at the overview of Fast Track, and its process.

First of all, who will be the concerning target for Fast Track support?
It is those who apply for the evaluation. Regardless of the amount the enterprises is lending suffering from currency option trading such as KIKO, anyone can apply.
If the company submits the application to ‘Liquidity Support Team’ of their bank or the head office of each bank, banks will classify the company into level A~D according to the credit evaluations. The company with credit A or B will be eligible to the rescue program.

Second, what support does Fast Track provide?
The company chosen for the supporting program will be provided with the liquidity within a month, in a way of extending its maturity of settling loss account from KIKO or holding bonds, lowering the interest rate, or swapping debt-for-equity.

Lastly, how the supporting process works?
The following is the way to proceed.


1. Application-Submit the document to bank.
-Corresponding bank receive the document and makes a check list.
-Investigates the adequacy of the document and forwards it to ‘Liquidity Support Team’

2. Request for credit evaluation (takes about a day)
-‘Liquidity Support Team’ asks the evaluating department of head office.

3. Evaluate the credit** (takes about 1~2 days)
-Risk Supervision Department: in charge of the enterprises branches’ cover
-Credit Loan Inspection Department: in charge of the enterprises the headquarters recognize

Reports the result of evaluation to ‘Liquidity Support Team’
-> Notice the result of evaluation to bank. Ask for issuing a letter of credit guarantee. (Takes about 3~5 days from application to issue)

4. Hold the self-consultative body** (takes about 5~10 days)
-Management department: Chain Supporting Team, Credit Loan Inspection Department
-Draw up a aid case based on the application of the company, and present for consideration to the self-consultative body.

The self-consultative body: the consultative body of the banks who are possessing a loan on credit of requesting companies, gathered to aid Fast Track

5. Provide liquidity


In short, we can see the role of ‘Liquidity Support Team’ is to report the credit evaluation result to each bank, and to apply for issuing the letter of credit guarantee. And the main role of the Fast Track is the backing policy set up for the small and medium enterprises.


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