Financial Services Commission Reviews Challenges Faced by SMEs... Holds TF Meeting to Address Financial Difficulties

[Asia Economy Reporter Gong Byung-sun] Financial authorities held a joint public-private task force (TF) meeting to discuss policy support measures for small and medium-sized enterprises (SMEs) facing difficulties such as rising interest rates.

On the 6th, the Financial Services Commission (FSC) held the 'Financial Difficulties Response TF Meeting for Vulnerable Sectors' chaired by Kwon Dae-young, Director of the Financial Policy Bureau. This was the second review meeting since the TF was launched on the 23rd of last month. Attendees included officials from the FSC, Financial Supervisory Service, Korea Federation of SMEs, Korea Development Institute, Korea Institute of Finance, Korea Development Bank, Industrial Bank of Korea, Korea Credit Guarantee Fund, and Korea Technology Finance Corporation.

The financial authorities focused on reviewing the recent worsening management and funding conditions of SMEs. According to the FSC, participants shared concerns that rising raw material prices are deteriorating the profitability of SMEs, and that uncertainties such as supply chain restructuring are negatively impacting their business environment. They also agreed that increasing financial costs due to rising interest rates are another factor making management more difficult.

Regarding the loan repayment moratorium for small business owners and SMEs, which will end in September, attendees evaluated that the moratorium loans would land smoothly due to prior consulting by banks and adjustments to debt repayment plans. There had been concerns that delinquency rates could sharply increase once the loan repayment moratorium ends.

An FSC official stated, "We will review and prepare financial support measures that can alleviate the management burden of SMEs and enhance their competitiveness."

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