Daegu Chamber Officials Request 'Special Financial Support Measures' for SMEs and Small Business Owners
President Moon Jae-in is attending a meeting with local market vendors and small business owners at Dongdaegu Station in Daegu on the 25th. [Image source=Yonhap News]
[Asia Economy Reporter Son Sun-hee] President Moon Jae-in visited Daegu, where the novel coronavirus infection (COVID-19) has been spreading intensively, on the 25th and said, "The Daegu regional economy has been completely hit directly," adding, "Now, we must provide active support through the supplementary budget (추경)."
On the same day, President Moon held a meeting with small business owners in Daegu at the conference room of KTX Dongdaegu Station in Dong-gu, Daegu, saying, "At one point, the increase in confirmed cases seemed to be subsiding, and there were signs that the economy was improving again, but this time, the number of confirmed cases due to group infections has surged significantly, and the economy has rapidly become difficult again."
The meeting was attended by Lee Jae-ha, chairman of the Daegu Chamber of Commerce and Industry, Kim In-nam, chairman of the Daegu Employers Federation, as well as local businesspeople, merchants, heads of economic organizations in Daegu, and financial industry officials including Kim Tae-oh, CEO of DGB Financial Group.
President Moon said, "The government has been very tense from the beginning and has devoted all efforts to quarantine," but added, "Because of that, we were worried about how much difficulty it would cause to our economy, especially to small business owners, self-employed people, traditional markets, and neighborhood businesses in the regional economy," explaining the background of managing quarantine and the economy as a 'two-track' approach.
He continued, "The government will actively utilize special grants and contingency funds, but I believe it will be insufficient to revive the struggling regional economy," and emphasized the need for supplementary budget formation, saying, "Even if a special disaster area is declared, that alone will be very insufficient." President Moon expressed hope, saying, "Fortunately, the National Assembly is responding positively regardless of party lines, so I think it will go well."
In particular, President Moon said, "The government does not consider the difficulties Daegu is experiencing as Daegu's problem alone but as a problem for the entire Republic of Korea," and added, "Prime Minister Chung Sye-kyun also plans to stay in Daegu from today to monitor the situation."
President Moon Jae-in is holding a meeting with local market vendors and small business owners at Dongdaegu Station in Daegu on the 25th. [Image source=Yonhap News]
Lee, chairman of the Daegu Chamber of Commerce and Industry, said, "With the difficult economic situation compounded by the COVID-19 crisis, the region is seeing an increase in companies suspending operations due to a sharp drop in orders and disruptions in raw material supply," adding, "Especially in Daegu, where the proportion of small and medium-sized enterprises and small business owners is very high, the current economic downturn is worsening management difficulties, and this crisis has brought even greater challenges," appealing for 'financial support' for SMEs and small business owners.
Lee said, "Although the government and various financial institutions are providing support, in the field, new loans and extensions of maturity are not being properly carried out due to loan limits, industry restrictions, and credit issues," criticizing, "This is because the central government applies uniform policies without considering local circumstances, forcing field workers to adhere strictly to principles."
He urged, "The government needs to take extraordinary measures, such as assuming all responsibility through loan guarantees for policy financial institutions' funding support," and appealed, "Since this is a crisis situation, please take special measures so that companies can receive practical benefits and survive."
Since financial sector officials, including the president of Daegu Bank, also attended the meeting, related discussions are expected to take place, and detailed measures are likely to be prepared soon.
Meanwhile, President Moon concluded his visit to Daegu after the meeting, saying, "We will not leave the affairs of Daegu and Gyeongbuk regions solely to Daegu and Gyeongbuk," and "Daegu and Gyeongbuk are experiencing unprecedented difficulties, and the government's willingness to support is also unprecedented. Let's trust and move forward together," according to Kang Min-seok, spokesperson for the Blue House.
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