Financial Services Commission Chairman Visits Site: "Expand Mid-sized Guarantee Limits by Growth Stage"

Kim Ju-hyun, Chairman of the Financial Services Commission, stated on the 7th regarding financial support measures for domestic mid-sized companies, "We will expand the guarantee limits according to the growth stages so that mid-sized companies can sufficiently utilize funds appropriate to their growth scale, and lower the interest rates on Primary-Collateralized Bond Obligations (P-CBO)."

On the 6th, at the financial company and Financial Supervisory Service insurance industry CEO meeting held at the Government Seoul Office in Jongno-gu, Seoul, Kim Joo-hyun, Chairman of the Financial Services Commission, wore a stern expression before the closed-door meeting. Photo by Jo Yong-jun jun21@

On the same day, Chairman Kim visited Putronic Co., Ltd., a mid-sized company located in Haeundae-gu, Busan, and held an 'On-site Visit and Meeting with Mid-sized Companies,' saying, "The growth of mid-sized companies is essential for the simultaneous growth of small and medium-sized enterprises (SMEs) and for large companies to have global competitiveness."

Following the SME on-site meeting held on the 1st, this meeting was arranged to listen to on-site voices regarding the management conditions and financial utilization plans of mid-sized companies. Attendees included Chairman Kim, representatives from six mid-sized companies in the Busan and Gyeongnam regions including Putronic, as well as officials from the Korea Development Bank, Korea Credit Guarantee Fund, and Industrial Bank of Korea.

The mid-sized company representatives attending the meeting voiced concerns about recent difficulties such as the triple high phenomenon (high interest rates, high exchange rates, and high oil prices), supply chain instability, securing excellent personnel, and labor cost burdens. They also emphasized the need to expand policy financing, which is mainly composed of SMEs, to include mid-sized companies in order for mid-sized companies to grow further and advance overseas.

In response, Chairman Kim explained that they are considering expanding the guarantee limit from the current 10 billion KRW to a maximum of 50 billion KRW according to growth stages so that mid-sized companies can utilize sufficient funds appropriate to their growth scale. He also emphasized that they are considering lowering the P-CBO interest rates to enable mid-sized companies to procure necessary funds at lower costs and securitizing accounts receivable to allow mid-sized companies to recover funds early and manage liquidity.

The Financial Services Commission stated, "The Financial Services Commission, together with related ministries such as the Ministry of SMEs and Startups and the Ministry of Trade, Industry and Energy, plans to prepare customized corporate financial support measures by faithfully reflecting the opinions of SMEs and mid-sized companies gathered through this and other meetings."

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