Gyeonggi Credit Guarantee Foundation Provides Emergency Funding of 850 Billion KRW to Companies Affected by COVID-19

[Asia Economy (Suwon) = Reporter Lee Young-gyu] Gyeonggi Province will urgently inject a total of 850 billion won in funds to minimize the damage to the local economy caused by the spread of the novel coronavirus infection.

The Gyeonggi Credit Guarantee Foundation announced on the 7th that it has prepared a comprehensive special support plan related to the novel coronavirus to overcome the local economic crisis, and will begin implementation as early as mid-this month.

First, Gyeonggi Credit Guarantee Foundation will operate a task force (TF) to establish a rapid support system for small and medium-sized enterprises (SMEs) and small business owners in the province. The TF, led by a full-time director of the sales division, will operate at 23 Gyeonggi Credit Guarantee Foundation sales offices. Special dedicated consultation counters for the novel coronavirus will be set up at the sales offices. Emergency dedicated personnel will be deployed if the scale of damage increases.

Through the TF, Gyeonggi Credit Guarantee Foundation will also monitor in real time the damage situation of SMEs and small business owners in the province caused by the novel coronavirus. This will promote the preparation of proactive institutional support measures.

In particular, Gyeonggi Credit Guarantee Foundation will provide special financial support worth 850 billion won for companies affected by the novel coronavirus. This amount is more than twice the 368.1 billion won supported during the 2015 MERS outbreak.

Gyeonggi Credit Guarantee Foundation will also implement measures to reduce the financial cost burden on affected companies, such as supporting interest rates through secondary guarantees.

Lee Min-woo, director of Gyeonggi Credit Guarantee Foundation, explained, "Expanding special financial support and active assistance inevitably involves bearing losses. We plan to continuously request cooperation from the province, cities and counties, and financial institutions regarding the loss portion to ensure smooth support for affected companies in the future."

Gyeonggi Credit Guarantee Foundation played a significant role in overcoming the economic crisis through financial support when the local economy faced a major crisis due to the aftermath of MERS in 2015. In particular, when the outbreak of MERS caused a surge in funding demand from SMEs and small business owners in the province, Gyeonggi Credit Guarantee Foundation actively provided support by operating on-site mobile teams.

This content was produced with the assistance of AI translation services.