SMEs and Small Business Owners 50 Trillion Won+α Livelihood and Financial Stability Package Program Prepared (Update)

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, is announcing the main points at a joint briefing of related ministries following the 1st Emergency Economic Meeting held on the 19th at the Government Seoul Office in Gwanghwamun, Seoul.

[Asia Economy Reporter Kwangho Lee] The government is establishing a large-scale financial crisis response program worth a total of 50 trillion won plus alpha to support small and medium-sized enterprises (SMEs) and small business owners struggling due to the novel coronavirus infection (COVID-19).

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, announced the results of the "1st Emergency Economic Meeting" containing these details at the Government Seoul Office Building on the afternoon of the 19th.

First, a large-scale program worth a total of 50 trillion won will be created in the first phase, and depending on the development of the COVID-19 situation, additional expansion will be actively pursued if necessary.

Considering the funding demand of small business owners, a total of 12 trillion won in emergency management funds will be newly supplied, and an ultra-low interest rate of about 1.5% will be applied to significantly reduce the interest burden.

Customized support will be provided according to credit rating, allowing the use of emergency management funds from exhausted funds (low credit), ultra-low interest loans from the Korea Development Bank (medium credit), and interest subsidy from commercial banks (high credit).

In addition, special guarantees worth 5.5 trillion won will be supported for loans to SMEs and small business owners temporarily facing difficulties, utilizing supplementary budget (supplementary budget) resources.

For SMEs, guarantee funds will be executed through the Korea Credit Guarantee Fund and the Korea Technology Finance Corporation, and for small business owners, through regional credit guarantee foundations to support prompt loans.

Furthermore, a total of 3 trillion won will be provided as full guarantees for urgent small fund needs of micro small business owners who have suffered direct or indirect damage due to COVID-19.

100% full guarantees and a 0.5 percentage point reduction in guarantee fees will be applied, and guarantees will be executed quickly through a simplified review focusing on a minimal checklist.

Additionally, the bond market stabilization fund will be reactivated to supply liquidity to companies temporarily experiencing funding difficulties, and COVID-19 response bond collateralized securities (P-CBO) will be issued to stabilize the corporate bond market and support refinancing corporate fund procurement.

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