Financial Authorities Expect 'COVID-19 Special Guarantee' to End Tentatively in the Second Half of the Year

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[Asia Economy Reporter Kiho Sung] Financial authorities plan to conclude the special guarantee program for small business owners and SMEs affected by COVID-19 in the second half of this year.

According to financial authorities on the 11th, the special guarantee program introduced to provide liquidity support to small business owners and SMEs affected by COVID-19 is expected to end in the second half of this year as it has exceeded the target amount of 15.3 trillion won.

The special guarantee applies preferential terms to companies that suffered damage related to COVID-19 import/export activities, companies operating in economically sensitive sectors such as travel, accommodation, and performances that are at risk of damage, and other companies confirmed to have justifiable need for support due to COVID-19 impact.

The Korea Credit Guarantee Fund (KODIT), Korea Technology Finance Corporation (KOTEC), and regional credit guarantee funds have executed COVID-19 related special guarantees and rapid/full guarantees totaling 17.9 trillion won as of June this year.

Since the target amount has already been exceeded, the financial authorities plan to terminate the support program for now. Afterwards, assistance may still be available through support programs from policy financial institutions or local governments even if it is not under the special guarantee program.

Financial authorities plan to increase government contributions and resume the special guarantee program if the COVID-19 situation worsens and additional demand is deemed necessary.

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