The Bank of Korea Increases Financial Intermediation Support Loan Limit by 5 Trillion Won to Aid COVID-19 Affected Businesses

[Asia Economy Reporter Kim Eun-byeol] The Financial Monetary Policy Committee of the Bank of Korea decided on the 27th to increase the limit of financial intermediation support loans from the existing 25 trillion won to 30 trillion won, an increase of 5 trillion won. Although the base interest rate was kept unchanged, this move is aimed at expanding financial support for companies affected by the novel coronavirus infection (COVID-19).

Accordingly, 5 trillion won (equivalent to 10 trillion won in bank loans) will be provided to small and medium-sized enterprises (SMEs) engaged in service industries such as tourism, dining, and distribution, as well as to small and medium-sized manufacturing companies facing difficulties in procuring raw materials and parts from China and experiencing export challenges to China.

The Bank of Korea stated, "We will support 4 trillion won to SMEs located in provincial areas, with a particular focus on the Daegu and Gyeongbuk regions, which have been severely affected, to help recover the regional economies that are facing increased difficulties." The Bank of Korea kept the base interest rate unchanged at 1.25% on the same day.

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