Gas Gong, 210 Billion KRW Liquidity and Sales Support for SMEs and Small Business Owners

Korea Gas Corporation Headquarters Building. (Photo by Korea Gas Corporation)

[Asia Economy Reporter Moon Chaeseok] Korea Gas Corporation announced on the 21st that it has finalized an "Emergency Economic Revitalization Plan" to provide 210 billion KRW in liquidity and sales support to small and medium-sized enterprises (SMEs) and small business owners struggling due to the spread of the novel coronavirus infection (COVID-19).

Earlier, on the 2nd, the Gas Corporation held an emergency management committee meeting to finalize the "Emergency Economic Revitalization Plan for SMEs and Small Business Owners" and then established detailed plans to provide a total of 210 billion KRW in liquidity and sales support.

First, to secure liquidity for SMEs and small business owners and support living expenses for vulnerable groups, an additional 63.8 billion KRW will be raised and operated through additional contributions to the currently operating Win-Win Fund.

An additional 60 billion KRW will be jointly invested with financial institutions to increase the Win-Win Fund for emergency liquidity loans to SMEs and small business owners in the Daegu and Gyeongbuk regions who are experiencing financial difficulties.

Approximately 350 million KRW raised from voluntary salary returns by executives and managers will be used in collaboration with social financial institutions to provide rapid loans to small business owners in the Daegu area through a "Social Finance Project (Microcredit)."

Contracts worth 79.2 billion KRW, equivalent to 20% of the corporation's construction, service, and procurement plans for SMEs scheduled for execution in the second half of the year, will be placed early in the second quarter. This is to alleviate financial difficulties caused by the recent sales cliff of domestic partner companies.

To this end, necessary materials for the maintenance of natural gas production and supply facilities will be purchased early to help increase sales for related companies and partners. Active support policies such as "raising the joint contract score for SMEs" will be implemented to expand bidding opportunities and orders for SMEs.

Within the limits permitted by relevant laws and regulations during construction, service, and procurement contracts, flexible application of regulations will be used to create cost savings of approximately 70.7 billion KRW and increase sales.

In cases of temporary contract non-fulfillment due to COVID-19, delay penalties will be waived. The minimum bid rate for small contracts under 200 million KRW will be temporarily raised from 80.5% to 87.75%.

Chae Hee-bong, President of Korea Gas Corporation, said, "We will not only faithfully implement the approximately 210 billion KRW 'KOGAS Win-Win Cooperation Package' prepared through this emergency economic revitalization plan but also actively coordinate with the government's key economic revitalization policies to continue sustained support activities."

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