Hong Nam-ki "Emergency Customs Clearance Support for Car Parts... 2 Trillion Won Policy Financing Provided to SMEs and Small Business Owners" (Update)

[Image source=Yonhap News]

[Asia Economy Reporter Jang Sehee] Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, stated on the 7th, "Since it has been identified that there are difficulties in logistics and customs clearance for parts produced in China, when related parts are imported into the country, we will actively support their swift domestic entry through 24-hour customs clearance and allowing import declarations before arrival."

On the same day, Hong held the 4th Economic Ministers' Meeting on the Response to the Novel Coronavirus Infection (Wuhan Pneumonia) and the 3rd Economic Vitality Measures Meeting at the Government Seoul Office, where he made these remarks.

He emphasized, "We will strengthen consultations with local governments in China to restart Chinese factories and actively support the rapid import of parts produced in China into the country."

He added, "We will also focus on expanding domestic production inventory and securing emergency alternative import routes through measures such as securing working hours, manpower, and financial support."

Furthermore, he said, "We will support rapid customs clearance for substitute parts urgently procured from third-country parts factories outside China, and if diversifying import sources is difficult, we will actively support the development of substitute parts domestically through short-term research and development (R&D) support and expedited environmental certification processing."

The government also announced financial support measures for small and medium-sized enterprises (SMEs) and small business owners. Approximately 2 trillion won in additional policy financing will be supplied to the groups expected to be affected by this situation.

Hong Nam-ki said, "To resolve financial difficulties and ensure smooth funding for small and medium-sized enterprises and mid-sized companies, we will newly supply about 1.9 trillion won in funds with preferential loan interest rates and guarantee fees."

He also explained, "For existing loans and guarantees from policy financial institutions maturing within six months, we will extend the maturity by up to one year and defer principal repayments for up to one year."

He added, "For small business owners and self-employed individuals, we will newly provide 20 billion won in low-interest (2%) management stabilization funds and additionally support 100 billion won in special guarantees with preferential guarantee ratios and fees."

Meanwhile, Hong announced that stronger emergency supply and demand adjustment measures will be implemented to stabilize the market and alleviate public anxiety. Once these emergency supply and demand adjustment measures are enforced, producers must report daily production volume, domestic shipment volume, and export volume, and retailers selling masks in large quantities above a certain threshold must report to the Ministry of Food and Drug Safety, the competent authority.

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