Government Injects Emergency Funds into Aviation, Shipping, Tourism, and Dining... 300 Billion KRW Support for LCCs (Comprehensive)

[Image source=Yonhap News]

[Asia Economy Reporter Kwangho Lee] Deputy Prime Minister and Minister of Strategy and Finance Hong Nam-ki announced 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 during the Economic Ministers' Meeting on COVID-19 response and the related Ministers' Meeting on Japan's export regulations held at the Government Seoul Office.

He also mentioned, "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."

Furthermore, he added, "The collection of unused transportation rights and slots (number of takeoffs and landings per hour) will be deferred, and Incheon Airport slots will be expanded from 65 to 70. A public guarantee program for aircraft operating leases will also be introduced."

Deputy Prime Minister Hong also presented support measures for the shipping industry. He emphasized, "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 continued, "General loans with interest rates of 1.5 to 2.25% will also expand 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. Property tax reductions for lodging businesses, extension of duty-free shop license fees for one year, and installment payments will also be allowed," he explained.

Regarding dining establishments, he expressed, "The scale of support funds for fostering dining businesses, currently at 10 billion won, will be expanded, and interest rates will be lowered by 0.5 percentage points."

He also stated, "We will increase visitor demand by strengthening quarantine measures at tourist sites and dining establishments and providing additional quarantine supplies. Early hosting of the Food Festa and early promotion of repair and modernization of major tourist facilities will also encourage the spread of dining and consumption atmosphere."

The meeting also reviewed Japan's export regulations. Deputy Prime Minister Hong evaluated, "Related production and exports are maintaining a steady flow, and no visible damage to our companies has appeared."

He added, "The best way to remove uncertainty is for the Japanese government to restore the regulatory measures to their original state," and strongly urged, "We once again strongly call for specific actions and measures."

He pledged, "Regarding the strengthening of competitiveness in the materials, parts, and equipment industry, which has been vigorously promoted since the Japanese government's measures, as well as the improvement of our economic structure and reinforcement of the value chain, we will accelerate without any hesitation."