Kibo Implements Special Measures to Support Companies Affected by COVID-19

Loan Repayment Deferral Possible Until Maturity for Closed Small and Medium Enterprises

[Asia Economy Reporter Kim Cheol-hyun] The Korea Technology Finance Corporation (Chairman Jung Yoon-mo, hereinafter referred to as Kibo) announced on the 30th that it has implemented the 'Special Measures for Accidents Involving Closed Businesses' to alleviate the burden on small and medium-sized enterprises (SMEs) that have closed due to COVID-19 and are required to repay loans in a lump sum.

Until now, SMEs that received loans secured by Kibo guarantee certificates had to fully repay the guaranteed loans upon closure. For SMEs struggling to repay, accident processing procedures such as provisional seizure were carried out, which exacerbated the difficulties faced by these companies.

This special measure, effective until September this year, expands the accident special measures for temporarily closed businesses that Kibo has been implementing since October last year to address these issues. Even if an SME using the guarantee closes, if it maintains financial transactions without loan delinquency and there are no other accident reasons such as infringement of business site rights, the special measure applies upon submission of a request for accident processing deferral.

Companies receiving the special measure are considered normal trading companies despite closure, and no separate accident processing procedures such as provisional seizure will be conducted until the maturity of the guaranteed loan. Kibo expects about 550 companies, approximately 15% of all accident companies, to be potential beneficiaries. In particular, this special measure applies not only to small business owners but also to all SMEs transacting with Kibo, actively responding to the government's support policies for closed SMEs.

Chairman Jung Yoon-mo of Kibo stated, "Kibo is devising multifaceted support measures through timely special measures not only in new guarantees but also in the post-management stage after guarantee support to assist SMEs severely affected by COVID-19," adding, "We will continue our efforts to be an 'umbrella on a rainy day' for SMEs in difficulty."

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