Shin Yong Bo Jeung Gi Geum Provides 680 Billion Won Support to COVID-19 Affected Companies

[Asia Economy Reporter Song Seung-seop] The Korea Credit Guarantee Fund announced on the 29th that it will provide support worth 680 billion KRW to companies affected by COVID-19 and others.

This support was made through the issuance of a P-CBO (Pooled Collateralized Bond Obligation) guarantee. The recipients include a total of 291 companies: 2 large enterprises, 22 mid-sized enterprises, and 267 small and medium-sized enterprises. Of the total support amount, 79%, or 540 billion KRW, will be supplied as new funds.

The KCGF's P-CBO guarantee is a guarantee system that supports companies in raising long-term funds directly from the financial market by issuing securitized bonds based on corporate bonds issued by individual companies. Large and mid-sized enterprises eligible must have a corporate bond rating of BB- or higher, while small and medium-sized enterprises must meet the KCGF's internal evaluation grade of K9 (or K10 for companies with CPA audited reports).

To alleviate the burden of financing costs due to recent interest rate hikes, the scope of interest rate benefits has been expanded to include "ESG management excellent manufacturing companies." Previously, benefits were provided to groups such as the "Innovative Companies National Representative 1000."

A KCGF official stated, "The financing costs for companies are increasing due to rising interest rates," and added, "We will continue to establish effective policies to reduce the financial burden on companies."

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