Special Guarantee Support for Companies Affected by the 'Ukraine Situation'

[Image source=Yonhap News]

[Asia Economy Reporter Choi Dong-hyun] The Ministry of SMEs and Startups and the Financial Services Commission announced that from the 15th, they will implement special guarantees through the Korea Technology Finance Corporation and the Korea Credit Guarantee Fund to support liquidity for small and medium-sized enterprises (SMEs) facing difficulties such as trade restrictions and payment disruptions due to the Ukraine crisis.

The special guarantees will broadly support companies directly affected, including domestic companies operating in countries subject to export control measures or financial sanctions such as Ukraine, Russia, and Belarus (conflict zones), companies engaged in exports and imports in conflict zones (including those planning transactions), as well as indirectly affected companies such as suppliers and companies in upstream and downstream industries related to these export-import companies.

Additional guarantees will be provided within half of the affected companies' sales revenue, regardless of existing guarantees, with limits granted after individual company assessments.

The guarantee ratio has been raised to 95%, up 10 percentage points from the general guarantee ratio of 85%. The guarantee fee rate is basically 0.3 percentage points and can be reduced up to a maximum of 0.8 percentage points with additional discounts applied.

For eligible companies currently using the Korea Credit Guarantee Fund and the Korea Technology Finance Corporation, full maturity extensions for one year will be supported in principle when the guarantee maturity comes due.

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