Government to Promote Maturity Extension, Principal and Interest Repayment Deferral, and New Funding Support for Ssangyong Motor Suppliers

Meeting of Ministers for Strengthening Industrial Competitiveness

Discussion on Ssangyong Motor Partner Companies' Situation and Support Measures
Providing Liquidity to Maintain Supply Chain and Employment of Parts Companies

Ssangyong Motor Pyeongtaek Plant, Pyeongtaek-si, Gyeonggi-do (file photo) [Image source=Yonhap News]

[Sejong=Asia Economy Reporter Joo Sang-don] The government has decided to expand liquidity support such as maturity extension and principal and interest repayment deferral for parts partner companies facing difficulties due to Ssangyong Motor's liquidity shortage. To alleviate management burdens, the deadline for national tax and customs payments will be extended.

The Ministry of Trade, Industry and Energy announced on the 29th that it held a meeting of related ministers to strengthen industrial competitiveness and prepared measures to expand liquidity support for Ssangyong Motor parts partner companies.

First, policy financial institutions and commercial banks will actively support partner companies with maturity extensions and principal and interest repayment deferrals.

For partner companies experiencing temporary management difficulties, liquidity will be supported using policy financial programs from KDB Industrial Bank, IBK Industrial Bank, Korea Credit Guarantee Fund, Korea Technology Finance Corporation, and Small and Medium Business Corporation. Specifically, KDB, IBK, and Korea Credit Guarantee Fund will support partner companies in key industries (such as automobiles) using currently operated support programs and will consider securing additional limits if necessary. In particular, the Korea Credit Guarantee Fund will provide emergency liquidity support for partner companies facing management difficulties due to repayment of promissory notes issued by Ssangyong Motor.

The Small and Medium Business Corporation will provide 50 billion KRW of dedicated funds to partner companies with excellent technology and business feasibility among those experiencing temporary management difficulties, and offer special maturity extensions to existing loan-supported partner companies. The Korea Technology Finance Corporation will provide 'management improvement support guarantees' to partner companies with high growth potential experiencing temporary management difficulties such as delayed payment for delivered goods.

The National Tax Service and Korea Customs Service will support national tax and customs payment to alleviate the management burden of partner companies experiencing temporary management difficulties. The National Tax Service will actively support extensions of payment deadlines and defer seizure and sale upon application, and the Customs Service will maintain unsecured payment extensions and installment payment support.

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