Financial Support of 4.6 Trillion Won Provided to Small Businesses Affected by COVID-19 in the Past Month

Provided by the Financial Services Commission

[Asia Economy Reporter Kim Hyo-jin] The Financial Services Commission announced on the 12th that a total of 4.6346 trillion KRW in financial support was provided from the 7th of last month to the 10th of this month to companies and small business owners affected by the novel coronavirus infection (COVID-19).

Through policy financial institutions such as KDB Industrial Bank, IBK Industrial Bank, and Korea Credit Guarantee Fund, 2.7892 trillion KRW was provided, and 1.8454 trillion KRW was supported through private financial companies including commercial banks, card companies, and insurance companies.

Among the total financial support, new loan support amounted to 2.063 trillion KRW, while maturity extensions and principal repayment deferrals for existing funds totaled 2.406 trillion KRW. Additionally, 165.3 billion KRW was supported through methods such as interest rate and overdue fee discounts and interest payment deferrals.

During the same period, a total of approximately 153,700 financial consultations related to funding difficulties were received by the Small Enterprise and Market Service, Regional Credit Guarantee Foundations, Korea Credit Guarantee Fund, and Financial Supervisory Service. Consultations were most frequent in the restaurant industry, which is relatively more vulnerable to funding shortages, with about 48,700 cases.

The government plans to supplement support measures by providing an additional 700 billion KRW in special guarantees through the supplementary budget and expanding the support scale of the corporate bond issuance support program (P-CBO) for small and medium-sized enterprises and mid-sized companies by more than 500 billion KRW.

On the same day, Son Byung-doo, Vice Chairman of the Financial Services Commission, held a meeting to review the implementation status of COVID-19 financial sector responses at the Financial Services Commission conference room in the Government Seoul Office, attended by officials from the Financial Supervisory Service and policy financial institutions, stating, "We will make every effort to provide financial support for COVID-19."

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