Financial Services Commission Provides Special Guarantee Support to Ukrainian Affected Companies

[Asia Economy Reporter Song Hwajeong] Special guarantee support will be provided to small and medium-sized enterprises (SMEs) that have suffered direct and indirect damage due to the Ukraine situation.

On the 14th, the Financial Services Commission and the Ministry of SMEs and Startups announced that from the 15th, special guarantees through the Korea Credit Guarantee Fund (KODIT) and the Korea Technology Finance Corporation (KOTEC) will be implemented to support liquidity for SMEs facing difficulties such as trade regulations and payment disruptions caused by the Ukraine situation.

The special guarantee will broadly support companies directly affected, including domestic companies operating in conflict areas such as Ukraine, Russia, and Belarus?countries subject to export control measures or financial sanctions?as well as companies exporting to or importing from these conflict areas (including companies planning transactions), and indirectly affected companies such as suppliers and other businesses in related upstream and downstream industries.

Additional guarantees will be provided regardless of existing guarantees within half of the affected companies' sales revenue, with limits granted after individual company assessments. The guarantee ratio will be increased by 10 percentage points to 95% compared to the general guarantee ratio of 85%, and the guarantee fee rate will be reduced by a basic 0.3 percentage points and up to 0.8 percentage points with additional discounts applied.

Furthermore, companies eligible for support currently using KODIT or KOTEC guarantees will, in principle, be supported with a full one-year maturity extension when their guarantee maturity comes due.

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