The Korea Technology Guarantee Fund (KOTEC), which had been operating under an acting leadership for nearly two years, has officially transitioned to a normal operational structure with the appointment of Kwon Hyung-taek as its new chairman. His leadership is expected to accelerate organizational stability, enhance support for small and medium-sized enterprises (SMEs), and drive management innovation.
According to government sources on July 20, Kwon, who took office on July 15, will begin his official duties this week. He plans to receive departmental reports throughout the week to understand key issues and assess the direction of organizational operations and priority initiatives. Additionally, he will start preparations for a presidential briefing scheduled for early August.
With this appointment, KOTEC has restored its normal leadership structure after 20 months. Following the expiration of former chairman Kim Jong-ho's term in November 2024, two attempts to appoint a successor failed, leading to a prolonged acting leadership period. The delay in appointing heads of public institutions after the new government took office further extended the leadership vacuum.
Kwon, a financial and public service expert with experience in both private finance and public institutions, is recognized for his understanding of the economic policy direction of the Lee Jae-myung administration. A graduate of Seoul National University with a degree in international economics, Kwon also holds a master's degree in management information systems from the University of Michigan. His career includes roles at Woori Bank's investment finance division, as a managing director at HSBC, and as an economic and financial advisor to the mayor of Incheon. He has also served as a representative of the Gimpo Gold Line and the head of HUG, and recently worked as an advisory committee member for the economic division of the national planning committee under the Lee administration.
Upon his appointment, Kwon expressed a clear commitment to expanding support for SMEs. In a meeting with reporters on July 20, he stated, "Key industries such as artificial intelligence, semiconductors, and defense are undergoing rapid changes simultaneously. I will do my utmost to ensure that SMEs benefit during this industrial transformation." He added, "When I first arrived in Korea in the 2000s, many people left large corporations or government jobs to start their own businesses. I aim to play a foundational role in creating that atmosphere again."
However, Kwon faces significant internal challenges. Last year, KOTEC recorded a record 1.5677 trillion won in compensation for general guarantees for SMEs and venture companies, increasing the burden of managing guarantee soundness. There is also a need to improve deteriorating management indicators, as KOTEC's public institution management evaluation grade dropped from excellent (A) in 2023 to good (B) in 2024, and then to average (C) last year, marking two consecutive years of decline. Additionally, preparations must be made for the potential consolidation of policy finance institutions.
Kwon emphasized the importance of communication in organizational operations. He remarked, "It is an era where a leader cannot do everything alone. I will actively communicate with staff and listen to diverse opinions through field visits." However, regarding the possibility of merging with the Korea Credit Guarantee Fund, he stated, "I have heard discussions about it, but I am still in the stage of understanding the work, so I do not have a prepared stance on that."
* This article has been translated by AI.
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