Hong Nam-ki: "10 Trillion Won Support for Small Business Loans at 3-4% Interest... Starting Next Month" (Update)

The 1st Emergency Economic Central Countermeasures Headquarters Meeting and the 15th Economic Relations Ministers' Meeting Held

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, is delivering opening remarks at the "1st Emergency Economic Central Countermeasures Headquarters Meeting" held on the 29th at the Gwanghwamun Government Seoul Office.

[Sejong=Asia Economy Reporter Kim Hyunjung] Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, announced on the 29th that an additional loan support of 10 trillion won with an interest rate of 3-4% will be provided to small business owners struggling due to the COVID-19 pandemic. Along with this, the government plans to select 10 key industrial sectors such as data, artificial intelligence (AI), and future cars to promote regulatory innovation to overcome the COVID-19 crisis and revitalize the economy.

On the morning of the same day, Deputy Prime Minister Hong presided over the 1st Central Emergency Economic Countermeasure Headquarters meeting and the 15th Economic Ministers’ Meeting at the Gwanghwamun Government Seoul Office and made the announcement.

First, the government recognizes that small business owners are the most affected by this crisis and plans to support them with loans totaling 10 trillion won at an interest rate of 3-4%. Previously, the government had prepared a low-interest (1.5%) financial support plan worth 16.4 trillion won and decided to provide an additional reserve fund of 315.8 billion won. Deputy Prime Minister Hong explained, "We have redesigned and announced the second financial support program for small business owners worth 10 trillion won, and support will begin in May. Six major commercial banks will provide loans at an interest rate of 3-4% based on 95% credit guarantees from the Korea Credit Guarantee Fund for medium credit borrowers." He added, "First program beneficiaries will be excluded from the support target to ensure that as many medium and lower credit borrowers as possible receive support. The loan application, reception, loan processing, and guarantee screening by the Korea Credit Guarantee Fund will be handled in a one-stop process to simplify procedures."

In addition, to boost economic vitality, the government will promote regulatory innovation in 10 major industrial sectors: data and AI, future cars and mobility, new medical technologies, healthcare, fintech, technology startups, industrial complexes, resource circulation, tourism, and e-commerce and logistics.

The tasks to be promoted include the introduction of a priority review system for innovative medical devices, expansion of consumer-directed genetic testing (DTC) items from 56 to 70, rationalization of fintech investment regulations for new technology finance companies (allowing investment), extension of venture company certification periods from 2 to 3 years, and the enactment of the Forest Recreation Tourism Promotion Act as a special regulation for mountain area utilization, totaling 65 selected tasks. Deputy Prime Minister Hong emphasized, "This is just the beginning, and we will accelerate additional regulatory reforms in the 10 major industrial sectors. In particular, for untact industries such as telemedicine, remote education, and online business, we will focus especially on regulatory reform and industrial development by turning the crisis into an opportunity."

The 'Korean New Deal,' focused on job creation to prepare for the post-COVID-19 era, will be actively promoted as a national project. It is explained that the project will shift from the concept of large-scale civil engineering works to job creation projects based on the digital economy and the Fourth Industrial Revolution.

Deputy Prime Minister Hong said, "The Korean New Deal is a new job creation project," adding, "A representative example will be planning and promoting large-scale IT projects based on domestic technology and manpower, leveraging our strengths." He further stated, "After a brainstorming discussion at today’s Central Disaster and Safety Countermeasure Headquarters meeting, we will formally discuss the direction and plans for promoting the Korean New Deal as an agenda item at the second meeting next week."

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