Shinbo Provides New Guarantees Worth 300 Billion Won to Companies Concerned About COVID-19 Impact

Preferential Guarantee Ratios and Fees with Simplified Screening Procedures

[Asia Economy Reporter Haeyoung Kwon] The Korea Credit Guarantee Fund announced on the 10th that it will implement a liquidity support program to temporarily resolve management difficulties and promptly stabilize management for companies expected to be affected by the novel coronavirus infection (Wuhan pneumonia).

The support targets small and medium-sized enterprises (SMEs) that are experiencing management difficulties due to the novel coronavirus or are expected to be affected. The targets include ▲ SMEs engaged in trade with China that have been directly or indirectly affected ▲ SMEs operating in industries expected to be affected such as travel, transportation, accommodation, and performances ▲ SMEs engaged in businesses closely related to SMEs involved in trade with China or industries expected to be affected.

Through this program, the Korea Credit Guarantee Fund will provide new guarantees totaling 300 billion KRW and extend existing guarantees in full without repayment.

The new guarantees will offer preferential treatment with a guarantee ratio of 90% and a guarantee fee rate reduced by 0.2 percentage points to alleviate the financial burden on companies, while simplifying the screening process to enable prompt guarantee support.

A representative of the Korea Credit Guarantee Fund stated, “We are closely monitoring the damage situation of companies to respond quickly to the spread of the novel coronavirus,” and added, “We will do our best to promptly stabilize the management of companies that are expected to be affected by the novel coronavirus.”

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