Government Provides 20 Trillion Won Emergency Financial Support to Export-Import and Overseas Expansion Companies Including Large Corporations

[Asia Economy Reporter Kwangho Lee] The government will provide emergency financing of 20 trillion won to export-import and overseas expansion companies, including large corporations, to respond to the novel coronavirus infection (COVID-19).

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, held the COVID-19 response economic ministers' meeting and the 2nd crisis management countermeasures meeting on the 25th, stating, "We will provide emergency financing of 20 trillion won through the Export-Import Bank to export-import and overseas expansion companies facing great difficulties due to the supply chain (GVC) shock and global restrictions on human and material movement."

The government plans to first supply 8.7 trillion won in new liquidity. Specifically, by utilizing existing loan and guarantee programs, an additional 4.7 trillion won will be supplied, including 2.2 trillion won in new loans and 2.5 trillion won in guarantee support.

An emergency management fund support program of 2 trillion won will be provided to companies without export-import contract performance or those that have exhausted their loan limits, and export performance-based funds will be expanded to include large corporations, supplying 4 trillion won to target companies including large corporations.

Additionally, for existing loans amounting to 11.3 trillion won maturing within six months, the government plans to extend the maturity by up to one year.

A government official said, "Support through existing programs such as maturity extension will be implemented immediately, and new programs will be swiftly supported after consultations with the Board of Audit and Inspection," adding, "If necessary, we will consider measures to compensate for costs required to secure the Export-Import Bank's financial soundness, such as the appropriate Bank for International Settlements (BIS) capital adequacy ratio."

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