Bank of Korea Gwangju-Jeonnam Branch Provides 10 Billion KRW in Special Funds for SMEs Affected by Torrential Rains

원본보기 아이콘

The Gwangju-Jeonnam Branch of the Bank of Korea announced on the 28th that it will provide a total of 10 billion KRW in special disaster recovery funds to small and medium-sized enterprises (SMEs) in the region in response to large-scale human and material damages caused by torrential rains.

This funding is intended as special disaster recovery support for SMEs in areas affected by the torrential rains, and will be provided and operated in addition to the existing local SME support funds.

For companies with damaged assets located within the jurisdiction of the Gwangju-Jeonnam Branch, financial institutions (banks) in the jurisdiction will be supported for 100% of new loans with maturities of up to one year (including maturity extensions, refinancing, and companies already benefiting from the existing local SME support funds) issued over the next four months until November. In addition, the deadline for issuing new loans under the temporary special fund for SMEs, totaling 496.9 billion KRW, will be extended until January of next year.

Furthermore, to strengthen selective support, 75% of the loan amounts issued by financial institutions to low-credit SMEs (credit ratings 6 to 10, unrated, and SOHO) will also be supported.

An official from the Gwangju-Jeonnam Branch of the Bank of Korea stated, "We expect that this measure will help improve the financial situation and management conditions of SMEs and self-employed individuals in areas affected by the torrential rains, and contribute to mitigating the damages."

© The Asia Business Daily(www.asiae.co.kr). All rights reserved.