Improved technology scoring model for credit guarantee fund

  • Authors:
  • So Young Sohn;Tae Hee Moon;Sanghoon Kim

  • Affiliations:
  • Department of Computer Science and Industrial Systems Engineering, Yonsei University, 134 Shinchon-dong, Seoul 120-749, South Korea;Department of Computer Science and Industrial Systems Engineering, Yonsei University, 134 Shinchon-dong, Seoul 120-749, South Korea;Technology Appraisal Division, Korea Technology Credit Guarantee Fund (KOTEC), Yeouido-dong, Seoul 150-010, South Korea

  • Venue:
  • Expert Systems with Applications: An International Journal
  • Year:
  • 2005

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Abstract

In Korea, liquidity problem is a major setback for many small and medium companies with great degree of growth potential in technology. In order to support such companies, Technology Credit Guarantee Fund has been established. A credit guarantee is given to the companies, which obtained a high score by a technology evaluation model so that they can get loan from the several financial institutes. Therefore, critical loss would occur when an inadequate evaluation model is used. In this study, we examine the existing scoring model with many attributes and provide an improved version which eliminates the multicollinearity. The proposed approach is expected to provide valuable information for the effective management of the various technology funds.