President Moon Announces "50 Trillion Won Emergency Financial Measures"... Holds First Emergency Economic Meeting (Update)

Emergency government system transition due to 'COVID-19 economic crisis'... President Moon Jae-in to preside directly once a week

President Moon Jae-in is speaking at the 1st Emergency Economic Meeting held at the Blue House on the 19th to discuss the response to COVID-19.
[Image source=Yonhap News]

[Asia Economy Reporter Son Sun-hee] On the 19th, President Moon Jae-in held the first Emergency Economic Meeting and announced that he would implement a "special emergency financial measure worth 50 trillion won" to "prevent the risk of bankruptcy for small and medium-sized enterprises (SMEs), small business owners, and self-employed people, who form the foundation of the ordinary people's economy, and to resolve financial instability."

In his opening remarks at the Emergency Economic Meeting held at 10:30 a.m. at the Blue House main building, President Moon stated, "This is an unprecedented comprehensive measure in terms of scale and content as a livelihood financial stability package program." He added, "The government, the Bank of Korea, and the entire financial sector have participated to provide sufficient liquidity to SMEs, small business owners, and the self-employed, utilizing all available means. If necessary, the scale will be further expanded depending on the situation."

President Moon explained, "Emergency management funds for small business owners have been expanded to 12 trillion won," and "the institutions handling these loans have been expanded to include commercial banks, allowing access to ultra-low interest loans at around 1.5% anywhere." He also added, "A special guarantee support worth 5.5 trillion won for SMEs and small business owners will also be implemented."

Additionally, President Moon emphasized, "The extension of loan principal maturities will be expanded to all financial sectors," noting, "For the first time ever, the entire secondary financial sector, including savings banks, insurance companies, credit unions, Saemaeul Geumgo, and card companies, has participated in the maturity extension." He further added, "All financial sectors will defer interest payments on loans to SMEs and small business owners, and a full guarantee program for micro small business owners will be newly established." With a total fund of 3 trillion won, this program will provide guarantees for the full amount of loans up to 50 million won to micro small business owners with annual sales of 100 million won or less, enabling them to receive loans quickly and easily at low interest rates.

President Moon Jae-in is speaking at the 1st Emergency Economic Meeting held at the Blue House on the 19th to discuss the response to COVID-19. [Image source=Yonhap News]

The Emergency Economic Meeting, held for the first time on this day, is a meeting chaired directly by President Moon to overcome the "unprecedented economic crisis" triggered by the novel coronavirus disease (COVID-19), and functions as an "Economic Central Disaster and Safety Countermeasures Headquarters." It will be held once a week for the next three months.

The meeting was attended by economic-related ministers and heads of committees, including Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki, Minister of Trade, Industry and Energy Sung Yun-mo, Minister of Employment and Labor Lee Jae-gap, Minister of SMEs and Startups Park Young-sun, Minister of the Interior and Safety Jin Young, and Financial Services Commission Chairman Eun Sung-soo. From the Blue House, Chief of Staff Noh Young-min, Policy Chief Kim Sang-jo, Senior Secretary for Jobs Hwang Deok-soon, Senior Secretary for Economic Affairs Lee Ho-seung, and Economic Advisor Park Bok-young were present.

Furthermore, since the meeting's discussion focused on "financial support" to stabilize the livelihood economy, Bank of Korea Governor Lee Ju-yeol also attended. This was his second attendance at a Blue House meeting since the "Special Economic and Financial Situation Review Meeting" on the 13th.

President Moon said, "The Bank of Korea played a major role in deciding this measure," and emphasized, "It is the first time that the fiscal and financial authorities, the central bank, policy financial institutions, commercial banks, and the secondary financial sector have united and cooperated as one."

He especially urged government officials, saying, "No matter how good the measures are, they only have meaning if they work properly on the ground," and repeatedly requested "speedy policy implementation," warning that the financial support prepared today should not become a "pie in the sky" for those who urgently need it.

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