“Software Mutual Aid Association guarantees more than 62 times the amount invested by the company and provides the highest guarantee multiplier among guarantee institutions. “This is part of our efforts to build an innovation ecosystem by providing financing and guarantees to software (SW), which is the core of national competitiveness.”
Kang Jeong-tae, executive director of the Software Mutual Aid Association, emphasized that the mutual aid association is serving as a catalyst for innovation through a guarantee business specialized in the SW industry.
The mutual aid association provides performance guarantee services such as bidding and contract guarantees, advance payment returns, and defect guarantees necessary for SW companies in the process of winning contracts, based on the investments of SW companies that are members and government contributions. This prevents situations where a contract is awarded but the contract is abandoned due to warranty issues.
Customized financial services such as fund lending and additional purpose projects are also supported.
Managing Director Kang, who worked at Seoul Guarantee Insurance, played a leading role in establishing the business foundation and establishing various regulations and systems in the early days of the mutual aid association’s establishment. Thanks to these achievements, he became the first employee to become a registered executive after the establishment of the mutual aid association.
In particular, he attracted attention by introducing the industry’s first self-guarantee system. Self-guarantee is a system in which a company directly provides a guarantee within a certain amount, which simplifies the review process and improves the work efficiency of both companies and unions.
Managing Director Kang said, “Companies ask for more guarantees at a lower cost, but we cannot accommodate all demands. After analyzing accumulated statistics and considering the SW industry ecosystem, we verified that there is no problem with guarantees below a certain amount. “We introduced self-guarantee,” he said.
Guarantee costs for mutual aid associations are around 20% compared to other industries. Joint guarantees, in which companies guarantee each other, were also abolished. Joint guarantees have been a huge burden on companies as they suffer serial damage due to guarantee issues at one company. Thanks to these efforts, the guarantee performance of mutual aid associations is increasing by 1 trillion won every year.
He said, “Even in a situation where the economy is not doing well and the global situation is becoming more uncertain, the mutual aid association has neither reduced the limit nor raised the guarantee fee,” and added, “We need to help companies more when the economy is difficult.”
He continued, “Although the overall size of the guarantee has increased, the delinquency rate is similar to last year, and insolvency is on the decline. This is an achievement created by trust with SW companies.” He added, “The improvement in the performance of the mutual aid association ultimately proves that the SW industry is continuing to grow.” “He emphasized.
The mutual aid association also built the ‘Software Dream Center’ in Pangyo 2nd Techno Valley last year. We provide free rental for 5 years to SW startups and provide an optimal environment for tenant companies to conduct research and development in various future industries such as autonomous driving and AI.
Managing Director Kang said, “With the goal of creating a successful startup like Microsoft, we are providing free rental facilities and even state-of-the-art facilities. Our goal is to create a SW startup ecosystem where tenant companies can interact and collaborate with each other.” said.
Reporter Park Doo-ho [email protected]
[Copyright © 전자신문. 무단전재-재배포금지]
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Here are two PAA-related questions based on the provided interview excerpt:
## Interview: Fostering Innovation through Software Guarantees
**Host:** Welcome to World Today News, where we delve into the forces shaping our future. Today, we’re exploring the crucial role of the Software Mutual Aid Association in bolstering South Korea’s burgeoning software industry. Joining us are Mr. Kang Jeong-tae, Executive Director of the Software Mutual Aid Association, and [Name], an independent expert in information technology and startup ecosystems. Welcome to both of you.
**Section 1: The Necessity of Specialized Guarantees**
**Host:** Mr. Kang, the article highlights the Software Mutual Aid Association’s mission to provide specialized guarantees to software companies. Could you elaborate on why this tailored approach is essential for the software industry’s growth?
**(Mr. Kang responds, discussing the unique challenges software companies face in securing conventional guarantees and how the S.M.A.A. addresses these challenges.)**
**Host:** [Name], from your experience, how significant is access to reliable financial support in fostering a thriving startup ecosystem?
**( [Name] shares their insights on the impact of guarantee services on startup success rates and overall industry growth.)**
**Section 2: Innovation through Self-Guarantee and Joint Guarantee Abolition**
**Host:** Mr. Kang, the article mentions the introduction of the self-guarantee system. What were the driving factors behind this innovation, and how has it impacted both the S.M.A.A. and the companies it serves?
**(Mr. Kang explains the rationale behind the self-guarantee system, its benefits for both parties involved, and the factors considered in its implementation.)**
**Host:** The article also notes the abolition of joint guarantees. Can you elaborate on the potential downsides of such a system and why the S.M.A.A. chose to move away from it?
**(Mr. Kang discusses the risks associated with joint guarantees, emphasizing the S.M.A.A.’s commitment to mitigating risk while supporting individual companies.)**
**[Name], what are your thoughts on the decision to abolish joint guarantees? Do you believe this approach safeguards the long-term health of the software industry ecosystem?**
**( [Name] offers their perspective on the wider implications of this decision, potentially drawing comparisons with other guarantee models in different industries.)**
**Section 3: Supporting Growth Amid Economic Uncertainty**
**Host:** The article highlights the S.M.A.A.’s steadfast support for software companies even in the face of economic challenges. Mr. Kang, how does the S.M.A.A. balance its commitment to supporting innovation with responsible risk management during periods of economic downturn?
**(Mr. Kang discusses the S.M.A.A.’s strategies for navigating uncertainty, emphasizing its dedication to adapting its practices to meet evolving industry needs.)
**Host:** [Name], how crucial is the role of institutions like the S.M.A.A. in ensuring the resilience of a nation’s technological sector during economic downturns?
**( [Name] analyzes the broader impacts of such support systems on national competitiveness and technological advancement.)**
**Section 4: The “Software Dream Center” and the Future of Innovation**
**Host:** Mr. Kang, the establishment of the “Software Dream Center” is a significant initiative. Can you elaborate on the vision behind this project and how it aims to nurture the next generation of tech leaders?
**(Mr. Kang describes the goals and features of the “Software Dream Center,” highlighting its potential to foster collaboration and innovation.)**
**Host:** [Name], based on global trends in tech innovation, what are your predictions for the future of software development, and how well-positioned is South Korea to capitalize on these trends?
**( [Name] provides insights into emerging technological landscapes and assesses South Korea’s potential for continued leadership in the software sector.)**
**Host:** Thank you both for joining us today and sharing your valuable insights. We wishMr. Kang and the Software Mutual Aid Association continued success in their endeavors to fuel South Korea’s software revolution.
**(Concluding remarks and sign-off)**
