Public Procurement Service Improves Terms for Credit and Loans of Non-Ferrous Metals Such as Guri and Zinc

[Asia Economy (Daejeon) Reporter Jeong Il-woong] The Public Procurement Service announced on the 1st that starting from the 16th of this month, it will improve and implement the system for credit sales and loan releases of stockpiled raw materials such as aluminum, copper, zinc, tin, lead, and nickel.

First, for credit sales, the annual usage limit will be uniformly increased by 1 billion KRW per company, and the interest rates applied to credit sales will be reduced by 0.2%p to 1%p depending on the size of the company as the core of the system improvement.

Additionally, extension interest rates will be applied differently according to company size, and overdue interest rates will be reduced by 6%p. The previous method, which had extension interest at 5% per annum and overdue interest at 16% per annum, will be changed to apply 3% extension interest and 10% overdue interest based on the basic interest rates set differently by company size.

For loan releases, the total loan period and the basic interest application period will be extended to reduce the repayment burden on companies, and the improvements in credit interest rates will be applied equally to loan interest rates, thereby improving the system.

Accordingly, the extension period will be lengthened from the previous maximum of 6 months (first extension) to 9 months (second extension), and the basic interest application period will increase from 3 months to 6 months.

Loan release refers to companies borrowing stockpiled raw materials to improve short-term supply conditions and repaying later in kind.

Lee Jae-seon, Director of the Public Supplies Bureau at the Public Procurement Service, said, “Considering that smaller companies feel the difficulties of raw material price surges more acutely, we have improved the credit and loan systems for stockpiled raw materials,” and added, “The Public Procurement Service will continue to communicate with companies that have actual demand for raw materials and strive to enhance the effectiveness of the government’s stockpiling function.”

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