Ministry of Environment Expands Financial Support for Environmental Companies: "Principal Repayment Deferral and Low-Interest Loans"

[Asia Economy Reporter Kim Bo-kyung] The Ministry of Environment announced on the 26th that it will expand financial support for small and medium-sized environmental companies struggling with management difficulties due to the novel coronavirus infection (COVID-19).

They decided to defer the principal repayment of the Environmental Industry Promotion Fund and Environmental Improvement Fund for the 2nd to 4th quarters of this year and extend the repayment deadline by up to 9 months.

The total amount of principal repayment deferral is 54 billion KRW. The target companies are 582 firms that received support from the Environmental Industry Promotion Fund and Environmental Improvement Fund between 2012 and 2018.

Applications for deferral will be accepted from the 1st of next month at the branches of 16 banks handling the loans. The Korea Environmental Industry & Technology Institute under the Ministry of Environment will individually guide the target companies.

Related information can also be found on the Environmental Policy Fund Support System (loan.keiti.re.kr) and the Environmental Policy Fund Loan Support Project KakaoPlus channel.

Additionally, the Ministry of Environment increased the 'operating funds' portion of the Environmental Industry Promotion Fund to provide practical help to small and medium-sized environmental companies facing management difficulties.

Operating funds are funds used to support expenses for business operations such as labor costs, raw material costs, and fuel costs. Of the 45.5 billion KRW Environmental Industry Promotion Fund this year, the originally allocated 25.5 billion KRW for operating funds was increased by 6 billion KRW, providing a total of 31.5 billion KRW in loans.

An official from the Ministry of Environment stated, "By providing long-term and low-interest loans such as the Environmental Industry Promotion Fund to small and medium-sized environmental companies, we expect it will help stabilize the management of companies struggling due to COVID-19."

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