Transition Team "Support 'Financial Package' Including Special Funds for Small Business Owners... Considering New Loan Program"

Ahn Cheol-soo, Chairman of the Presidential Transition Committee Photo by Yonhap News

[Asia Economy Reporter Bu Aeri] The Presidential Transition Committee announced on the 28th that it will promote customized special funds support exclusively for small business owners to assist with damages caused by the prolonged COVID-19 pandemic.

On the same day, Ahn Cheol-soo, the head of the Transition Committee, made this announcement while presenting the "100-Day Emergency Response Roadmap for COVID-19: Livelihood Economy Sector" at a press conference held at the Transition Committee's Tongui-dong office in the afternoon.

The committee prepared a "Small Business Financial Structure Package Support Plan" as one of the four core tasks. This was based on the assessment that the prolonged COVID-19 pandemic has delayed the recovery of small business owners, increasing the burden of interest repayment due to rising debt and raising the risk of loan defaults.

Chairman Ahn said, "We will provide full compensation for losses through a mix of four measures, including not only cash support but also financial structure packages, loan provision, maturity extensions, interest rate reductions, and even tax credits."

The committee plans to implement debt restructuring for distressed (or at-risk) small business owners, refinancing of non-bank loans, and special fund support starting in October.

Regarding the temporary extension of loan maturity and repayment deferral measures for small business owners, currently extended until the end of September, Chairman Ahn explained, "Before the maturity comes, we will explore various methods to enable self-reliance, such as applying the bad bank concept and other diverse approaches."

A bad bank is an institution that operates a special fund to manage non-performing loans and support debt restructuring.

In this regard, Kim So-young, a member of the Economic Division 1, said, "We are considering new loan programs," adding, "Our commitment to continuously provide liquidity support for small business owners remains unchanged."

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