Established at Headquarters and Regional Offices
Rapid Situation Reporting System
Support for Damage Recovery with Related Agencies
Heavy rain damage at Eomjeong Naechang Market in Chungju, Chungbuk (left) and Yesan Permanent Market in Chungnam / Photo by Ministry of SMEs and Startups
[Asia Economy Reporter Kim Daeseop] The Ministry of SMEs and Startups announced on the 4th that it has activated a 'Disaster Situation Room' to minimize damage from heavy rain and establish recovery support measures.
This Disaster Situation Room was immediately set up following a heavy rain preparedness status check meeting held at the Ministry of SMEs and Startups the previous day. The ministry established Disaster Situation Rooms at its headquarters and local SME and Startup Agencies to build a rapid situation reporting system. Activities have begun to assess damage, strengthen preventive measures in vulnerable areas in cooperation with related organizations, support facility damage recovery, and provide information on policy fund support systems for affected businesses.
Due to the prolonged rainy season, a factory work facility in Pyeongtaek, Gyeonggi Province was buried, causing casualties and property damage. Additionally, numerous flood damages occurred in factories, commercial buildings, and traditional markets, and recovery work such as drainage and organizing fixtures is currently underway. With the continued heavy rain and the approach of Typhoon No. 4 'Hagupit,' concerns are rising that damage to small and medium enterprises and small business owners will continue.
The Ministry of SMEs and Startups plans to implement various policies to revitalize the local economy, such as special guarantee loans and financing for affected businesses, as well as online and offline sales exhibitions of local specialties. The ministry aims to support affected businesses to quickly restore normal operations.
Businesses wishing to apply for special guarantees or loans should report the damage to their city, county, or district office (or town, township, or neighborhood office), obtain a disaster confirmation certificate from the local government, and submit it to the loan or guarantee institution to receive financial support necessary for recovery.
Small and medium enterprises can apply for disaster funds (up to 1 billion KRW per business, 1.9% interest rate, 2-year grace period, 3-year repayment) through the Korea SMEs and Startups Agency with the disaster confirmation certificate and receive loan support. If a guarantee certificate is required when applying for a loan at commercial banks, businesses can visit the Korea Technology Finance Corporation (or Korea Credit Guarantee Fund) with the disaster confirmation certificate to obtain a special guarantee certificate and receive support.
Small business owners who need a guarantee can visit the Regional Credit Guarantee Foundation to obtain a special guarantee certificate and then apply for a loan at a local commercial bank to receive disaster funds (up to 70 million KRW per business, 2.0% interest rate, 2-year grace period, 3-year repayment). If a guarantee is not required, they can bring the disaster confirmation certificate and apply for a loan at a general commercial bank.
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