[Mr.Kim’s On-Site Tour] the 3rd Conference in Changwon


Hello all.

Has anybody waited for my series of posts about Mr. Kim’s On-Site Tour? This is the 3rd one, letting you have a look at what happened at the conference in Changwon.

I put the details in the diagram below, to help you understand quicker and easier.

As well as the concerns already discussed in Incheon and Iksan, the SMEs’ entrepreneurs expressed their concern regarding the current method of credit assessment. One of the entrepreneurs said, “The current method of credit assessment for SMEs does not well reflect the performance of SMEs.” Why do many entrepreneurs think so? This is because, when a business spends money investing, its debt to profit ratio increases, even though the investment will be beneficial in the future. The credit assessment does not take this investment factor into account, not foreseeing the future benefits to be brought by the investment. Also, SMEs entrepreneurs may experience temporary fluctuations in their profits, depending on economic cycles. This factor is not considered in credit assessment, which may mistakenly regard a temporary loss as pro-longed downturn. To sum up, the current method of credit assessment for SMEs are not practically reflecting the performances of SMEs, and degrading the credit rating of SMEs. In response to this concern, Mr. Kim said, “If the current method has such flaws to correctly measure the credit rating of SMEs, the assessment method should be revised with due consideration.” There have been efforts to improve the current concern related to the credit assessment for SMEs. FSC in cooperation with other entities will carefully revise this matter once again. The revised method is expected to be more effective in reflecting SMEs’ potential to grow as well as their capabilities to advance technologies.

Oh well, I’ve got just one more post to write about Mr. Kim’s On-Site Tour. The very last one in Gumi will be up tomorrow 🙂



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