Additional 25 Billion KRW Support for Ssangyong Motor Partners

[Sejong=Asia Economy Reporter Kwon Haeyoung] The Ministry of Trade, Industry and Energy announced on the 22nd that it has signed a business agreement with Gyeonggi Province and the Korea Credit Guarantee Fund to raise an additional 25 billion KRW in funds to support liquidity for Ssangyong Motor's partner companies.

According to the agreement, if Gyeonggi Province contributes 5 billion KRW to the Credit Guarantee Fund through a supplementary budget, the Fund will provide preferential guarantees worth 25 billion KRW, which is five times the amount, to Ssangyong Motor's partner companies in early July.

The funds raised this time will be integrated with the existing 50 billion KRW preferential guarantee program for Ssangyong Motor's partner companies operated by the Credit Guarantee Fund, operating at a total scale of 75 billion KRW.

Previously, the Credit Guarantee Fund relaxed the requirements so that more companies could receive more funds, and this will be fully applied starting with the funds from this agreement.

While the support was previously limited to about 250 first-tier partner companies of Ssangyong Motor, the scope has now been expanded to include second-tier partner companies as well. The maximum guarantee limit per company has also been increased from 3 billion KRW to 7 billion KRW, and the guarantee ratio for companies located in Gyeonggi Province has been raised from 90% to 95%.

Furthermore, the screening requirements regarding sales decline have been eased so that companies that had previously failed to pass loan screening due to temporary management deterioration caused by the Ssangyong Motor crisis can now receive support.

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