Hong Nam-ki "Providing 45 Billion Won in Management Stabilization Funds to SMEs and Small Business Owners" (Comprehensive)

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, is delivering opening remarks at the 5th Economic Ministers' Meeting on COVID-19 Response and the 4th Economic Vitality Measures Meeting held on the 12th at the government Seoul office video conference room. Photo by Moon Ho-nam munonam@

[Asia Economy Reporters Kwangho Lee and Sehee Jang] The government will provide 25 billion KRW to small and medium-sized enterprises (SMEs) and 20 billion KRW to small business owners as management stabilization funds at reduced interest rates starting from the 13th, to support those affected by the spread of the novel coronavirus (COVID-19). Concerns and caution about the contraction of economic activities were also expressed.

Deputy Prime Minister and Minister of Strategy and Finance Hong Nam-ki stated this during his opening remarks at the Economic Ministers' Meeting on COVID-19 Response and Economic Vitality Measures held at the Government Seoul Office on the 12th.

The government also plans to newly supply 105 billion KRW for SMEs and 100 billion KRW for small business owners under preferential guarantee conditions.

Deputy Prime Minister Hong continued, "Due to the COVID-19 situation, there has been a sharp decline in tourists visiting Korea, difficulties in travel, accommodation, and dining industries, and a contraction in consumption at department stores and traditional markets, resulting in an overall contraction of economic activities," adding, "A significant part of this is due to excessive fear and anxiety."

He further requested, "The government is making every effort for thorough preemptive quarantine, and confirmed patients are managed within the government’s quarantine system. Please overcome excessive fear and anxiety and engage in normal economic and consumption activities."

Regarding the employment trend in January, he emphasized, "The number of employed persons in January increased by 568,000 compared to the same month last year," adding, "Considering the recent expansion of the decline in the working-age population, which makes it difficult to increase employment, this result is significant."

He also explained, "Employment rates rose in all age groups except for those in their 40s, and the decline in the employment rate for those in their 40s slowed significantly from 0.6% to 0.2 percentage points."

As characteristics of the employment improvement trend, he cited ▲ manufacturing employment increasing for the first time in 22 months ▲ the number of employed persons in their 30s increasing for two consecutive months.

However, he noted, "There is a possibility that the COVID-19 situation may affect employment in service industries and others," and "Since structural slowdown factors such as population continue to operate, uncertainty may increase."

The meeting also included an agenda to review the progress of major investment activation tasks.

Deputy Prime Minister Hong said, "We will steadily promote the discovery of 100 trillion KRW in investments across three major sectors?private, private investment, and public?outlined in this year’s economic policy direction to restore investment sentiment early in the year," adding, "Currently, 10 trillion KRW out of 25 trillion KRW in private investment and 5.2 trillion KRW out of 15 trillion KRW in private investment projects are proceeding normally."

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