Hong Nam-ki Announces 500 Billion Won Scale 'Win-Win Special Guarantee' for Auto Parts Industry (Comprehensive)

5th Emergency Economic Central Countermeasures Headquarters Meeting

Korea Together Sale to be Held for Two Weeks from June 26

Plans to Expand Overseas Orders and Revitalize Corporate U-Turn to be Prepared by July

Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki is delivering opening remarks while presiding over the "5th Emergency Economic Central Countermeasures Headquarters Meeting" held at the Government Seoul Office in Gwanghwamun, Seoul on the 28th.

[Sejong=Asia Economy Reporters Kwangho Lee, Sangdon Joo] The government will establish and supply a 500 billion KRW-scale 'Win-Win Special Guarantee' to support the automobile parts industry struggling due to the COVID-19 pandemic. Additionally, to stimulate consumption in the first half of the year, a large-scale special discount event called 'Korea Together Sale' will be held for two weeks starting at the end of June. Furthermore, the government will prepare an 'Overseas Order Expansion Plan' to compensate for the sharp decline in overseas export demand and a 'Corporate U-Turn Revitalization Plan' to significantly assist companies returning from overseas by July, and actively promote these in the second half of the year.

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, held the 5th Emergency Economic Central Countermeasures Headquarters (Economic Central Headquarters) meeting at the Government Seoul Office on the 28th to discuss additional support measures for major industries affected by COVID-19 and the promotion plan for the Korea Together Sale.

Deputy Prime Minister Hong stated, "Due to the sharp decline in demand caused by COVID-19 and prolonged lockdowns worldwide, key industries such as automobiles have been severely impacted, and some domestic industries like exhibitions continue to face difficulties. We have prepared additional support measures for major affected industries including automobile parts, shipbuilding, textile industries, exhibitions, and sports."

First, the government will establish and supply a 500 billion KRW-scale Win-Win Special Guarantee by pooling efforts from the finished car industry, government, and local governments to support the automobile parts industry suffering from reduced finished car production. Deputy Prime Minister Hong emphasized, "We will provide liquidity support to small and medium-sized parts companies with excellent technology or proven supply contracts with finished car manufacturers but who have low credit ratings or have exhausted loan and guarantee limits, thereby protecting the automobile industry ecosystem." He added, "To support automobile demand, the public sector will advance the purchase of over 90% (about 9,500 units) of work vehicles by the third quarter, and the support scale for electric cargo vehicles, which have high market demand, will be expanded more than twofold from 5,500 to 11,000 units."

Deputy Prime Minister Hong expressed, "To alleviate difficulties in the mid-sized shipbuilding industry suffering from order declines, we will promote early replacement of old government vessels with eco-friendly ships and early orders for coast guard vessels within about 30 ships focusing on essential needs." He also added, "If ship delivery is delayed due to COVID-19, the maturity of production financing will be extended until actual ship delivery."

He also mentioned, "For the textile and apparel industry, we will actively supplement demand by executing 90% of the public sector's budget for purchasing police uniforms, firefighter uniforms, and other clothing in the first half of the year," and "additional liquidity support will be provided through maturity extensions of loans and guarantees by the Small and Medium Business Corporation and Korea Credit Guarantee Fund, as well as special guarantees for startups and ventures."

Furthermore, "For the exhibition industry, we will provide momentum for revitalization by supporting 600,000 KRW per company for postponed exhibition booth participation fees, promotional marketing support through the exhibition portal, and holding events using local exhibition facilities during the Together Sale," and "for the sports industry, we will expand loans by 20 billion KRW, support indoor sports facility usage fees, provide quarantine cost support for international competitions, and promote the creation of a non-face-to-face sports coaching market," he explained.

The government decided to hold the large-scale special discount event Korea Together Sale for two weeks from June 26 to July 12 to stimulate consumption. Deputy Prime Minister Hong said, "The Korea Together Sale is a large-scale special discount event held for the first time in the first half of the year, comparable to the representative sale event 'Korea Sale Festa' scheduled for the second half of the year." He added, "This event will help alleviate difficulties faced by large and small distribution companies, small and medium enterprises, and small business owners severely impacted by the COVID-19 crisis and provide a venue to activate consumption."

In addition, as part of the second half economic policy direction (HaGyeongJeong) measures, the government will soon prepare export revitalization plans including non-face-to-face marketing support and K-quarantine exports to restore export capacity. Moreover, plans to expand overseas orders and revitalize corporate U-turns will also be prepared by July and actively promoted in the second half of the year.

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