Kibo Implements 'Accident Special Measures' for Emergency Support of SMEs Affected by Wildfires

All-out Efforts to Prevent Insolvency of SMEs in Temporary Management Crisis
in Special Disaster Zones

The Korea Technology Finance Corporation announced on the 31st that it will implement an 'Accident Special Measure' to support the swift normalization of management for small and medium-sized enterprises (SMEs) in wildfire-affected areas declared as special disaster zones.

Starting from the 1st of next month, this special measure is a system designed to defer the classification of SMEs experiencing temporary management difficulties due to the recent large-scale wildfires as delinquent companies caused by guaranteed loan defaults or business site seizures.

The target companies are SMEs located in wildfire-affected special disaster zones announced by the Ministry of the Interior and Safety, whose damage has been confirmed through documents such as the ‘Disaster SME Confirmation Certificate’.

The reasons for deferring the classification as delinquent companies under the Accident Special Measure include ▲principal and interest arrears ▲seizure, provisional seizure, provisional disposition, or other rights infringements on business sites ▲registration of default and public information by the Korea Federation of Banks ▲deterioration of the representative’s credit, etc. However, companies objectively judged to have difficulty in normalization, such as those receiving a guarantee accident notice from the creditor bank or undergoing auction proceedings on their business sites, are excluded.

Companies applying this special measure can not only defer the classification as delinquent companies but also receive a deferral of collateral preservation measures such as provisional seizure and provisional disposition executed by the Korea Technology Finance Corporation. Kim Jong-ho, Chairman of the Korea Technology Finance Corporation, said, “We hope this Accident Special Measure will help SMEs struggling due to unexpected disasters to recover quickly and return to normal life,” adding, “The Corporation will continue to closely monitor the damage situation and do its best to respond comprehensively to support the normalization of SMEs.”

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