Lee Ju-yeol "Preparing Financial Support Measures for Companies Affected by COVID-19"

[Image source=Yonhap News]

[Asia Economy Reporter Eunbyeol Kim] Lee Ju-yeol, Governor of the Bank of Korea, stated that the negative impact on our economy due to the spread of coronavirus disease (COVID-19) is inevitable and announced plans to prepare specific financial support measures for companies.

On the 14th, at the 'Macroeconomic and Financial Meeting' held at the Bankers' Hall in Jung-gu, Seoul, Governor Lee said, "We hope that COVID-19 will not last long, but considering the high correlation with the Chinese economy and the psychological contraction of domestic economic agents, the negative impact on our economy is somewhat inevitable."

He continued, "Damage caused by COVID-19 is materializing mainly in the service sector and some manufacturing industries," adding, "The Bank of Korea is preparing specific financial support measures for the service sector, which is experiencing damage due to economic activity contraction caused by anxiety and a decrease in travelers, and for manufacturing industries facing difficulties in production due to challenges in procuring raw materials and parts from China." This indicates the intention to support companies with funds using the Financial Intermediation Support Loan (hereinafter referred to as FISL).

He also added, "We plan to continue managing market liquidity generously so that companies can smoothly raise the funds they need in the financial market, and so that temporary increases in funding demand during this process do not lead to higher funding costs."

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