Financial Services Commission: "Large Corporations Must Prioritize Self-Help Efforts Such as Market Fundraising"

Reconfirmation of Financial Support Principles for Large Corporations Including Financial Companies
Closely Monitoring the Current Management Status of the Aviation Industry

Eun Sung-soo, Chairman of the Financial Services Commission, is providing on-site support at commercial bank branches on the 1st to ensure the smooth implementation of financial support measures related to COVID-19.

[Asia Economy Reporter Kangwook Cho] Financial authorities once again emphasized the principle that self-help efforts, such as raising funds in the market, must precede government support for large corporations.

On the 3rd, the Financial Services Commission (FSC) held a market inspection meeting chaired by Chairman Eun Sung-soo and reaffirmed the principle of financial support for large corporations as a follow-up measure to the 'Financial Market Stabilization Plan.'

The FSC stated that unlike small business owners and small and medium-sized enterprises (SMEs), large corporations, including financial companies with market access, must first make self-help efforts to raise funds primarily from the market while maximizing the use of internal reserves and available assets when attempting to use government support programs.

The corporate finance support program included in the Financial Market Stabilization Plan aims primarily to restore the financial market system so that the financial market can function properly, enabling companies to raise the necessary funds from the market.

In particular, since efforts to raise funds from the market must precede government support, the FSC explained that government support programs are unlikely to offer better conditions than the market in terms of interest rates, guarantee fees, and maturities.

Earlier, the government set a policy at the 2nd Emergency Economic Meeting last month to prevent corporate bankruptcies caused by the impact of the novel coronavirus disease (COVID-19). Accordingly, large corporations were included among the beneficiaries of the livelihood and financial stabilization programs exceeding 100 trillion won in scale.

Regarding the aviation industry, which has recently been facing difficulties, the FSC stated, "We are closely monitoring the current management status of the aviation industry," and "We are working closely with related ministries, including the Ministry of Land, Infrastructure and Transport, the competent authority, to review necessary measures."

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