Mid-sized Companies Welcome Progressive Measures for Financial Market Stabilization Plan

[Asia Economy Reporter Kim Cheol-hyun] The mid-sized enterprise sector has expressed its welcome for the financial market stabilization measures derived from the 2nd Emergency Economic Meeting. The Korea Federation of Mid-sized Enterprises (hereinafter referred to as KFME) issued a statement on the 25th, saying, "We sympathize with the government's urgent recognition of the global economic recession and financial market instability concerns caused by the spread of COVID-19, and we welcome the progressive measures to stabilize the financial market that expand support targets to include general enterprises, including mid-sized companies."

Furthermore, KFME emphasized, "The government's extraordinary measures covering all areas, including expanding loans and guarantee supply to general enterprises including mid-sized companies, supporting corporate bond issuance and underwriting, and establishing funds to stabilize the bond and securities markets, are a clear indication of the severity of the economic situation and must be implemented effectively without any delay."

KFME also stated, "In particular, the decision of private financial institutions, which are the gateway to corporate liquidity, to participate in efforts to overcome the national crisis through loan maturity extensions and contributions to market stabilization funds will be an important opportunity to enhance the effectiveness of these measures," adding, "for the 100 trillion won scale corporate emergency relief funds to be fully effective, it is essential to focus capabilities on rapid execution that surpasses all existing practices."

KFME added, "In active response to the President's determination to prevent any company from going bankrupt due to the shock of COVID-19, we will make speedy efforts to stabilize management based on close solidarity with various sectors, including numerous cooperating small and medium enterprises."