Financial Services Commission Prepares Comprehensive Support Package Worth 50 Trillion Won for Small and Medium Enterprises

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[Asia Economy Reporters Song Hwajeong and Song Seungseop] The government is set to provide customized funding support worth up to 50 trillion won for small and medium-sized enterprises (SMEs).

On the 27th, Kim Joo-hyun, Chairman of the Financial Services Commission, stated at the 11th Emergency Economic and Livelihood Meeting chaired by the President, "The current economic conditions may pose difficulties for SMEs," adding, "We are preparing a comprehensive support package worth 50 trillion won."

First, 12 trillion won will be supplied to address temporary management difficulties. Customized funding will be provided to SMEs to respond to the three highs: high interest rates, high prices, and high exchange rates. To address interest rates, preferential guaranteed loans with favorable interest rates will be supplied for early-stage startups, along with fixed-rate special loans that can later be converted to variable rates. To cope with rising raw material prices, special loans will be provided to companies adopting the delivery price linkage system and working capital special loans to companies affected by raw material price increases. To respond to exchange rates, the approval for extending the maturity of import letters of credit will be relaxed.

To normalize vulnerable companies, 7.4 trillion won will be invested to proactively respond to signs of insolvency and to improve support systems for vulnerable companies' recovery. Business restructuring funds will be supplied under preferential conditions, additional corporate restructuring innovation funds will be raised, and plans include expanding and regularizing rapid financial support and supplying new funds to workout companies.

For future growth support, 30.7 trillion won will be supplied to continuously provide funding for innovative industries such as digital and super-gap technologies, as well as startups and venture companies. The expansion of funding based on future growth potential rather than collateral value or financial statements will include pilot venture loans, preferential guarantees for startups, and credit loans for innovative companies. Additionally, preferential guarantees and special funds will be supplied to SMEs aiming to enter new industries.

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