SBC said with the ending of the joint surety practice, going forward, some 14,000 businesses are expected to benefit on an annual basis.

"The change will make it easier for young entrepreneurs (with little assets), in particular, to establish their own business without being excessively burdened with the repayment guarantees," a SBC executive said.

He, however, said that to cope with any moral hazards that may arise, the corporation will use a review committee to check management practices of businesses that want to use the policy funds.

Quantifiable scores on management performance and prospects will be calculated in detail to determine extent of support to be given to a particular venture, with those that fail to meet basic criteria to be excluded from support.

In addition, entrepreneurs using funds will be required to sign transparency management contracts with failure to meet the agreement resulting in repayment of support offered and restrictions on future assistance. (Yonhap)