Gyeonggi-do Provides Emergency Support for COVID-19 Affected Export SMEs Including 'Diversification of Export Channels'

According to survey results, export companies in Gyeonggi-do most desire management fund support amid the difficult situation caused by COVID-19.

[Asia Economy (Suwon) = Reporter Lee Young-gyu] Gyeonggi Province is taking urgent measures to diversify export channels and provide support to resolve difficulties faced by export companies in the province due to the spread of the novel coronavirus infection (COVID-19).

First, the province is conducting the "Online Export Consultation Video Service Support Project" to enable non-face-to-face consultations with buyers, as overseas export consultation meetings and exhibitions have been postponed or canceled due to COVID-19. The project budget is 370 million KRW.

Additionally, it is promoting the expansion of sales and marketing support projects using global B2C and SNS (250 million KRW) and theme- and item-specific online exhibition support projects (300 million KRW).

Furthermore, 1.35 billion KRW has been allocated for the "Export Insurance and Guarantee Fee" support project for small and medium-sized enterprises affected by export damage. In addition, the support limit for affected companies has been raised from the previous 1.2 million KRW to 2 million KRW, and group insurance enrollment will also be supported to create stable export conditions.

Since last month, the province has secured a total of 200 billion KRW in "COVID-19 Special Funds" (150 billion KRW for SMEs, 50 billion KRW for small business owners) and is providing support up to a maximum of 500 million KRW per company.

Also, through the Gyeonggi Credit Guarantee Foundation, guarantees related to COVID-19 are being supported on a scale of 2 trillion KRW, and principal repayment deferrals are being implemented for companies lacking the capacity to repay loans.

Kim Gyu-sik, Director of Economic Planning for the province, stated, "We expect this urgent measure to be a great help to small and medium-sized export companies in the province struggling due to COVID-19," and added, "We will continue to do our best to promote field-centered policies."

Meanwhile, a survey conducted by Gyeonggi Province targeting export companies in the province on the "Field Perception of the Spread of COVID-19" showed that more than 70% suffered damage. In particular, these companies expressed a desire for expanded export support projects and financial support.

Also, the policy most desired by companies to receive support was "Management Fund Support," accounting for 59%.

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