Support of 5.5 Trillion Won for Period Industry Partners Starting from the 5th... Which Companies Are Eligible?

[Asia Economy Reporter Kangwook Cho] Starting from the 5th of next month, a total of 5.5 trillion KRW in operating funds will be provided to period industry partner companies. The support targets are partner companies within the industries eligible for the Period Industry Stabilization Fund.

The Period Industry Stabilization Fund completed the establishment of key support procedures, including signing agreements with 17 banks participating in the operating fund support program for period industry partner companies, on the 31st of last month, and plans to launch the program from the 5th.

Participating banks will lend operating funds necessary to alleviate management difficulties caused by the novel coronavirus infection (COVID-19) to partner companies (prohibiting repayment of existing bank loans). The fund issues securitized bonds based on loan claims and sells them to the private sector and others.

The support scale for partner companies is up to 5.5 trillion KRW. To this end, the fund will provide up to 1 trillion KRW in funds for this program.

The target companies are partner companies within the industries eligible for the Period Industry Stabilization Fund (targeting small and medium-sized enterprises and mid-sized companies, excluding individual business owners). In particular, companies selected as necessary for maintaining the industrial ecosystem through collaboration between the primary contractors and relevant ministries are eligible.

Partner companies can consult with the banks they wish to transact with among those with which they already have loan relationships about using the program.

If there is no bank with an existing transaction, partner companies can consult with the banks they wish to transact with about using the program.

The Period Industry Stabilization Fund announced that the list of banks (17 contracted institutions), loan application forms (templates), and program details will be posted on the fund’s website (https://kisf.kdb.co.kr) starting from Monday, August 3rd.

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