Medium-sized Business Sector "Welcomes Loan Maturity Extensions and Repayment Deferrals... Additional Financial Support Needed"

[Image source=Yonhap News]

[Asia Economy Reporter Kwak Minjae] The small and medium-sized enterprises (SME) sector expressed its welcome on the 27th regarding the government’s announcement of the ‘Extension of Maturity Extension and Repayment Deferral Measures and Soft Landing Support Plan.’

The Korea Federation of SMEs issued a statement on the day, saying, “Among the SMEs benefiting from the loan maturity extension and repayment deferral measures, 88.7% responded that it was helpful, indicating that it is an effective policy,” and added, “We expect it will continue to help SMEs overcome liquidity crises.”

However, they urged, “Since the maturity extension depends on voluntary agreements between companies and financial institutions, clear guidelines from financial authorities and thorough monitoring are necessary to prevent confusion at on-site service counters.”

They also emphasized, “As the triple challenges of high inflation, high interest rates, and high exchange rates intensify, and with the prolonged COVID-19 pandemic worsening SME sales conditions, additional financial support measures for SMEs must be promptly prepared.”

Finally, they stated, “The SME sector will also do its utmost during the given deferral period to restore normal business operations, create jobs and added value, and contribute to the development of the Korean economy.”

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