Mineral Resources Corporation Provides 40 Billion Won Support to the Mining Industry

Emergency Operating Fund Loan up to 700 Million KRW with Interest Rate Reduction
210 Billion KRW Mining Industry Loan Principal Repayment Deferral
Shortened Selection and Review Period for National Subsidy Support Targets

[Asia Economy Reporter Moon Chaeseok] Korea Mineral Resources Corporation announced on the 9th that it has prepared a support plan worth 40 billion won to help the domestic mining industry, which is experiencing management difficulties due to the spread of the novel coronavirus infection (COVID-19).

On the same day, the Mineral Resources Corporation established an emergency support plan to overcome the crisis in the domestic mining industry containing these details.

Mining companies will be provided with emergency operating funds of up to 700 million won by utilizing existing collateral.

The loan interest rate will also be further reduced by 0.3 percentage points. The Mineral Resources Corporation lowered the interest rate by 0.25 percentage points earlier this year.

The repayment of principal on loans worth 21 billion won, scheduled for the second quarter, will also be deferred depending on the circumstances of the companies.

The selection and review period for the 14.6 billion won in national treasury subsidies allocated to the mining industry this year will also be shortened. This will enable early execution of the related budget.

Support for modernization of mining equipment and investment in safety facilities will also be paid in advance up to 45% of the contract amount. Subsidies for construction projects such as drilling wells will also be prepaid up to 70%.

The system will be changed to allow subsidies to be applied for at any time according to the progress of the project. Previously, subsidy applications could only be made once a year.

The Mineral Resources Corporation plans to propose to the government to secure special loan funds through the Energy Resources Special Account and to request additional national treasury subsidies through supplementary budgets.

Nam Yunhwan, Acting President of the Mineral Resources Corporation, said, "It is time for comprehensive support policies that can have an immediate effect on the domestic mining industry, which is facing an unprecedented crisis due to market stagnation and COVID-19."

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