600 Billion Support for Rehabilitation SME 'Rejump Package-Type Finance'

[Asia Economy Reporter Kim Daeseop] The Ministry of SMEs and Startups announced on the 24th that it will collaborate with the Financial Services Commission and related institutions to provide a 60 billion KRW-scale 'Package-type Financial Support for Rehabilitation Companies.'

This package-type financial support is designed for small and venture companies undergoing rehabilitation procedures under the Debtor Rehabilitation Act. To normalize management and enable recovery of rehabilitation companies, new fund loans and sales channel support (contract performance guarantees) will be provided as a package. Support is scheduled to begin on the 1st of next month.

The Small and Medium Business Corporation, Korea Asset Management Corporation (KAMCO), and Seoul Guarantee Insurance are participating as collaborating institutions in the package-type financial support. The Small and Medium Business Corporation and KAMCO will jointly provide funds totaling 35 billion KRW necessary for rehabilitation companies.

Seoul Guarantee Insurance will relax screening criteria for rehabilitation companies receiving joint loans and preferentially supply unsecured performance guarantees up to a limit of 500 million KRW per company, totaling 25 billion KRW.

The package-type financial support for rehabilitation companies applies preferential conditions such as credit loans and unsecured special guarantees with interest rates ranging from 2% to 5%. Additionally, to ensure prompt support and reduce burdens on rehabilitation companies, submission documents for loan and guarantee agreements will be minimized. The company evaluation and support procedures will be conducted as swiftly as possible.

No Yongseok, Director of Global Growth Policy at the Ministry of SMEs and Startups, said, "Through this package-type financial support for rehabilitation companies, we hope that companies with technological capabilities and growth potential can overcome difficulties and serve as a catalyst to resume economic activities."

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