If you missed our featured posts, ‘Mr. Kim’s On-Site Tour’, I strongly recommend you read them. The posts are listed under the folder, ‘Mr. Kim’s Tour.’ The former FSC’s Chairman Kim Seok-Dong visited a number of major industrial complexes in Korea, to see financial challenges faced by SMEs and find solutions to support those SMEs.
What do SMEs do in economy, at home and abroad? SMEs play a major role in creating jobs and generating income sources for low-income earners. According to IFC, SMEs are supposed to foster economic growth, social stability, and contribute to the development of a dynamic private sector. Then, for those SMEs to carry out its designated role, what is in need?
Access to financial services is vital in developing SME sector in any economy. However, as you may guess, SMEs are usually challenged by restrained access to financial services, being often exposed to financial vulnerabilities. Considering this is a barrier against further development of SMEs, IFC has made great efforts over the last decade. IFC has provided funding for equity, loans, and mezzanine finance to financial intermediaries focusing on SME financing. Surprisingly, USD 41.5 million was injected to IFC Global SME Banking Advisory Services Program.
Thanks to this program, SMEs in financially underdeveloped countries could receive loans in need. Of course, this program cemented IFC’s leading role in SME financing sector. Now, you would acknowledge that IFC provides more than ‘funds’. As well as giving financial supports, IFC prepares financial capabilities for SMEs. Then, now let us move on to the last post about IFC!