Government Expands Liquidity Support for T-Mef Damage to 1.6 Trillion Won

Unsettled Amount Estimated at 818.8 Billion Won
"Refunds of 35.9 Billion Won Completed for Travel and Gift Certificates"

[Image source=Yonhap News]

The government will increase liquidity support to 1.6 trillion won for affected companies struggling to receive sales proceeds due to the Tmon and Wemakeprice (Timep) incident.

On the 21st, the Ministry of Economy and Finance announced this at the Economic Ministers' Meeting held at the Government Seoul Office regarding the response measures related to the Timep incident.

First, the Ministry of SMEs and Startups and local governments will supply an additional 430 billion won, raising the liquidity supply for seller damage support from the existing 1.2 trillion won to 1.6 trillion won. The government also plans to review measures to ease the financial burden, such as lowering loan interest rates for affected small business owners and SMEs.

The Small Enterprise and Market Service support scale is 170 billion won, and the Korea SMEs and Startups Agency has injected an additional 70 billion won, expanding the supply scale to 100 billion won. Applications for the Small Enterprise and Market Service funds began on the 9th, and loan approvals started on the 14th. As of the 19th, a total of 697 cases amounting to 28.1 billion won have been received.

The 300 billion won scale agreement program between Industrial Bank of Korea and Korea Credit Guarantee Fund also began accepting applications on the 9th and started disbursements on the 14th. As of the 19th, a total of 112 applications have been received, with an estimated disbursement scale of about 58.8 billion won.

Emergency management stabilization funds for sellers who suffered unsettled damages will see an additional injection of 360 billion won from three local governments, expanding the total scale to 1 trillion won.

The government is also proceeding as planned with tax support and employment support for sellers. The National Tax Service completed early payment of confirmed VAT refunds amounting to 61.1 billion won by the 14th. Support such as up to nine months extension of payment deadlines, tax audits, and suspension of seizure and sale will continue.

The Ministry of Employment and Labor is operating a task force to support the large number of unemployed caused by this incident, swiftly providing employment retention subsidies and unemployment benefits, and promoting advance payments and living expense loans in case of large-scale wage arrears.

Regarding relief for general consumer damages, refund procedures for a total of 35.9 billion won in damages from general products and gift certificates have been completed so far, and relief for small mobile phone payment damages will also be expedited.

To assist remaining victims, the government explained that it will accelerate collective dispute mediation related to travel, accommodation, airline tickets, and gift certificate sectors.

Meanwhile, the total unsettled amount past the settlement date related to this incident is estimated at 818.8 billion won.

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