Hong Nam-ki "300 Billion KRW Emergency Loan to Low-Cost Airlines... 60 Billion KRW Support for Shipping Industry" (Update)

[Image source=Yonhap News]

[Asia Economy Reporter Jang Sehee] Hong Nam-ki, Deputy Prime Minister and Minister of Strategy and Finance, said on the 17th that "an emergency loan program will be established for low-cost carriers (LCCs) within a maximum range of 300 billion won" in relation to the novel coronavirus infection (COVID-19).

Deputy Prime Minister Hong made this announcement at the Government Seoul Office during an economic ministers' meeting on COVID-19 response, which was also held as a related ministers' meeting on Japan's export regulations.

Hong emphasized, "In cases where flights are suspended or routes are reduced due to this situation, payment of airport facility usage fees will be deferred for up to three months."

Regarding the shipping industry, Hong mentioned, "An emergency management fund exclusively for the shipping industry will be newly established with a scale of 60 billion won, and during the suspension period of passenger transportation, port facility usage fees and passenger terminal rental fees will be reduced by up to 100%."

Concerning the tourism industry, he explained, "To resolve financial difficulties of small and medium-sized tourism companies without collateral capability, a special unsecured credit guarantee loan of 50 billion won will be introduced and supported at a low interest rate in the 1% range."

He added, "General loans with interest rates of 1.5 to 2.25% will also expand the support targets and provide early support considering industry demand, and repayment of tourism fund loans will be deferred for one year from today upon application."

Additionally, support measures for affected lodging businesses were announced. For affected lodging businesses, the government plans to promote property tax reductions under the approval of local councils, and for duty-free shops experiencing difficulties due to business suspension, the payment deadline for license fees will be extended by up to one year. Furthermore, installment payments will be allowed up to six times.

Regarding the food service industry, he mentioned, "The scale of support funds for fostering food service businesses, currently at 10 billion won, will be expanded, and the interest rate will be lowered by 0.5 percentage points."