“Formation of a Consultative Body to Address SME Difficulties... Thorough Review of Financial Status”

Kim Ju-hyun, Financial Services Commission Chairman, Holds On-site Meeting with Small and Medium Enterprises

Kim Ju-hyun, Chairman of the Financial Services Commission, stated on the 5th, "We will establish the 'Small and Medium Enterprise (SME) Issues Inspection Council' within this month to more closely monitor the financial situation of SMEs."

Chairman Kim made these remarks at an on-site meeting with SMEs held at IBK Industrial Bank of Korea in Jung-gu, Seoul, saying, "Due to the continued high interest rates, SMEs are facing ongoing operational difficulties, and depending on future market conditions, these difficulties may intensify."

A meeting to promote the housing pension, hosted by the Financial Services Commission and Korea Housing Finance Corporation, was held on the 3rd at the Seoul Jungbu branch of the Housing Finance Corporation. Kim Ju-hyun, Chairman of the Financial Services Commission, is delivering the opening remarks. Photo by Heo Young-han younghan@

The meeting was organized to listen to each company's experience using programs that began new or expanded operations from the 1st of this month, as a follow-up to the 'Customized Corporate Finance Support Measures' announced last February.

Company representatives shared their experiences using financial support programs tailored to their respective business situations. Company A presented a case where, during the largest crisis since its founding due to economic downturn, it was able to recover by receiving interest rate reductions and debt repayment deferrals through the 'Rapid Financial Support Program.' Company B shared a case where, after a recent delivery contract was not renewed causing business difficulties, it received interest deferral support through IBK's 'Interest Repayment Burden Relief Program.'

Additionally, Company C, currently facing difficulties due to high interest rates and decreased sales, reported that it received guidance indicating eligibility for the 'Special Program for Reducing Financial Costs for Small and Medium Corporations,' which started operation on the 1st, and plans to apply, expecting a reduction in interest expenses in the future.

Seo Kyung-ran, Head of the SME Industry Research Division at IBK Economic Research Institute, emphasized, "Since the first half of 2021, sales declines among SMEs and small business owners have continued, and rising raw material prices have also reduced corporate operating profits," adding, "It is important to prepare implementation plans, such as strengthening mutual cooperation among financial institutions, to ensure that companies eligible for support do not miss out on benefits."

Accordingly, the Financial Services Commission plans to launch the SME Issues Inspection Council by the end of this month, composed of experts from economic research institutes within policy financial institutions, financial research institutes, the Credit Information Agency, and industry economic research institutes. This council will review the financial status, loans, and financial conditions of SMEs monthly to detect risk factors early and respond accordingly, as well as to promptly and thoroughly prepare financial support tasks needed on the ground.

Chairman Kim stated, "SMEs account for 98% of all companies in our country and 68% of corporate employment," and added, "I hope that the three types of Rapid Normalization Support Programs, which began full-scale operation this week as part of the customized corporate finance support measures announced last February, will help SMEs facing difficulties."

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