Chairman Yoon Dae-hee: "Additional 658.8 Billion KRW Supplied for COVID-19 Special Guarantees... Active Support"

by Park Sunmi

Published 05 Nov.2020 15:05(KST)

Special Guarantee for COVID-19 Affected Companies: Additional KRW 658.8 Billion Supplied One Month After the 4th Supplementary Budget

Yoon Dae-hee, Chairman of the Korea Credit Guarantee Fund (first from the left), visited Wooshin Steel located in Yeongcheon-si, Gyeongbuk on October 20th to directly hear the voices from businesses affected by COVID-19.

[Asia Economy Reporter Park Sun-mi] The Korea Credit Guarantee Fund (KODIT) announced on the 5th that the 'COVID-19 Affected Small and Medium Enterprise (SME) Special Guarantee,' established to alleviate management difficulties and stabilize management for companies affected by the prolonged COVID-19 pandemic, has reached 658.8 billion KRW just one month after its reactivation following the 4th supplementary budget.

KODIT has supplied approximately 1.4 trillion KRW in special guarantees since February this year to support SMEs struggling due to the COVID-19 crisis, and is currently providing an additional approximately 1.5 trillion KRW in special guarantees using funds secured through the 4th supplementary budget in September.

This special guarantee also offers preferential measures to ease the financial burden on affected companies by increasing the guarantee ratio to 95%, which is more favorable than general guarantees, and reducing guarantee fees (a 0.3 percentage point reduction in the guarantee fee rate and a maximum 1% guarantee fee rate cap). Additionally, the screening criteria have been relaxed, and the screening methods and approval authority procedures simplified to ensure prompt guarantee support for affected companies.

Yoon Dae-hee, Chairman of the Korea Credit Guarantee Fund, stated, “KODIT is making various efforts to overcome the national economic crisis caused by COVID-19 and to provide support that affected companies can feel. We will spare no effort to provide swift and proactive support as a policy institution so that affected companies can overcome the COVID-19 crisis and grow again.”