Financial Services Commission "Low-credit Corporate Bonds and CP Purchases to Begin This Month"

Establish SPV During the Week and Form Investment Management Committee

Son Byung-du, Vice Chairman of the Financial Services Commission / Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Kim Hyo-jin] Sohn Byung-doo, Vice Chairman of the Financial Services Commission, stated on the 14th that a special purpose vehicle (SPV) for purchasing low-credit corporate bonds and commercial papers (CP) will be established within this week, and an investment management committee will be formed to begin purchases within this month.

Vice Chairman Sohn made this announcement while presiding over a financial risk response team meeting in the morning at the Korea Federation of Banks in Jung-gu, Seoul, addressing the impact of the novel coronavirus disease (COVID-19).

He also said, "The support program for key industry cooperation companies will also establish an SPV by mid-month and promptly proceed with the program."

Vice Chairman Sohn mentioned that domestic demand indicators have improved for two consecutive months, with consumer and corporate sentiment indices rising together, and the export decline narrowing last month, evaluating that "despite uncertainties caused by COVID-19, the Korean economy is showing a positive trend due to the government's comprehensive quarantine measures and real economy support."

However, he pointed out that "some manufacturing sectors affected by the weakening of the global value chain (GVC) and some companies suffering cumulative damage from COVID-19 may face increased difficulties, which could deepen polarization."

Vice Chairman Sohn said, "We will faithfully implement the livelihood financial stability package and swiftly promote new programs to ensure that the recent positive trend leads to economic recovery momentum."

Meanwhile, the Financial Services Commission reported that from February 7, when the government’s financial support measures related to COVID-19 were first announced, until the 10th of this month, a total of 1.765 million cases amounting to 156.6 trillion won in funds have been provided to small business owners and small and medium-sized enterprises.

It was explained that 74 trillion won in new loans and guarantees and 82.6 trillion won in extensions of existing loans and guarantees have been supported.

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