Industrial Bank of Korea Provides Special Operating Funds of 5 Trillion Won to Companies Affected by COVID-19

'Cheer Up Korea Special Operating Fund' Launched... 10 Billion KRW for Mid-sized Companies, 5 Billion KRW for Small and Other Companies
Part of the 2nd Emergency Economic Meeting's 'Financial Market Stabilization Measures' to Expand Funding Support for Small and Mid-sized Companies

[Asia Economy Reporter Kangwook Cho] The Korea Development Bank announced on the 26th that it has launched a 5 trillion won-scale product called 'Cheer Up Korea Special Operating Fund' to facilitate the prompt normalization of management for companies affected by the novel coronavirus infection (COVID-19).

This product was launched as part of the government's policy to expand loans to small and medium-sized enterprises (SMEs) and mid-sized companies (totaling 21.2 trillion won) announced on the 24th as part of the 'COVID-19 Related Financial Market Stabilization Measures.' The loan limit per company is up to 10 billion won for mid-sized companies and up to 5 billion won for SMEs and other companies, with an interest rate discount of up to 0.6 percentage points available.

In particular, the existing loan screening procedures have been simplified by significantly relaxing the approval authority so that branch offices can approve loans independently. It also has the advantage of enabling quick and efficient financial support through flexible exceptions without being bound by existing internal regulations.

The Korea Development Bank stated that since the government announced the 'Financial Sector Response Measures Related to the Novel Coronavirus' on the 7th of last month, it has supported a total of 426.7 billion won as of the 24th of this month for COVID-19 affected companies through new operating fund loans, extensions of existing loan terms, and export-import financial support. It also explained that it is actively striving to overcome the national economic crisis by further expanding fund supply from the beginning of the year, supplying a total of 14.2 trillion won up to the 24th of this month (an increase of 2.3 trillion won compared to the same period last year).

A Korea Development Bank official emphasized, "In addition to launching this new product, we will continuously make every possible effort to overcome the real and financial sector crises caused by COVID-19."

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