Junggyeonryeon "Minsheng Financial Stability Package Does Not Reflect Mid-sized Companies' Difficulties"

The Korea Association of Medium & Large Business (hereinafter referred to as KAMLB) welcomed the livelihood and financial stability package program approved at the first emergency economic meeting on COVID-19 response chaired by the President on the 19th, but expressed regret that the difficulties of medium-sized enterprises were not sufficiently reflected.

In a statement released that day, KAMLB said, "We fully agree with the government's urgent recognition of the economic and social repercussions of COVID-19, and we welcome the proactive response efforts, including the emergency activation of the emergency economic meeting chaired by the President as the Economic Central Disaster and Safety Countermeasure Headquarters." It added, "The 50 trillion won livelihood and financial stability package program announced at the first meeting, focusing on proactive financial support such as loan maturity extensions and interest deferrals for small and medium enterprises and small business owners, is understood as an inevitable measure to resolve the vicious cycle of financial instability and real economy crisis."

However, KAMLB stated, "Considering the indiscriminate nature of the crisis without distinguishing targets, it is regrettable that the difficulties of early-stage medium-sized enterprises lacking sufficient response capabilities, as well as those of medium-sized enterprises regardless of scale, were not adequately reflected." It continued, "In particular, many medium-sized enterprises that have borrowed large-scale facility investment funds will face not only the brink of survival if existing loans and even interest deferrals remain impossible amid the COVID-19 crisis, but numerous cooperating small and medium enterprises will also be significantly affected."

Furthermore, KAMLB emphasized, "To enhance the effectiveness of the COVID-19 overcoming program, it is necessary to move beyond uniform and simple size criteria and to examine the reality of the crisis more concretely based on in-depth communication with the field." It added, "The medium-sized enterprise sector will actively participate in the government's efforts to overcome the pandemic, mobilizing solid capabilities such as discovering new growth engines and creating jobs to contribute to building a safer society and a sustainable economy as a new foundation beyond today."