Today, Korean small and medium firms play an important role on the growth of the Korean whole economy. However, they have more serious difficulties in surviving in a drastic change on environment than large firms, because of their limited capital and ...
Today, Korean small and medium firms play an important role on the growth of the Korean whole economy. However, they have more serious difficulties in surviving in a drastic change on environment than large firms, because of their limited capital and disadvantages in raising funds.
In order to improve the financing of Korean small and medium firms, this study presents :
First, financing for small and medium firms by non-bank financial institutions as well as banks should be expanded.
Second, the function of Korea Credit Guarantee Fund should be strengthened in order to increase credit guarantees.
Third, direct financing through the capital market should be increased.