Shin Yong Bo Jeung Gi Geum Holds Emergency Inspection Meeting on Companies Affected by Heavy Rainfall

Implementation of Special Guarantee for Small and Medium Enterprises Affected by Heavy Rainfall

Yoon Dae-hee, Chairman of the Korea Credit Guarantee Fund (second from the right), held an "Emergency Inspection Meeting on Companies Affected by Heavy Rain" on the 10th at the Western Business Headquarters conference room in Mapo, discussing support measures for the affected companies.

[Asia Economy Reporter Park Sun-mi] The Korea Credit Guarantee Fund (KODIT) conducted an assessment of the damage status of small and medium-sized enterprises (SMEs) affected by the heavy rains and held an emergency inspection meeting to provide support.

On the 10th, at an emergency inspection meeting for recovery from the heavy rain damage attended by all executives and department heads, KODIT decided to implement a "Special Guarantee for SMEs Damaged by Heavy Rain" to help affected companies restore normal business operations. Eligible recipients are SMEs confirmed as disaster-affected by the government, local governments, or those allocated disaster recovery funds.

For affected companies, up to 300 million KRW will be provided combining working capital and facility funds, with a fixed guarantee fee rate of 0.5%. Additionally, for companies located in areas declared as special disaster zones, working capital support will be increased up to 500 million KRW, and facility funds will be supported within the required amount, with a fixed guarantee fee rate of 0.1% applied.

KODIT will also offer preferential benefits for trade credit insurance to affected SMEs. Eligible companies include those issued a disaster damage confirmation certificate and those located in special disaster zones. When subscribing to trade credit insurance, companies will receive a 10% discount on premiums, and the review period for insurance claim requests will be shortened to enable prompt payment of insurance benefits.

Given concerns about additional damage due to prolonged monsoon rains, KODIT has established an emergency response system by operating an "Emergency Economic Situation Room" led by the Executive Director at headquarters and setting up eight rapid support teams in the field to effectively implement various support policies.

Yoon Dae-hee, Chairman of the Korea Credit Guarantee Fund, stated, "We will continue to focus KODIT’s capabilities on SMEs struggling due to the heavy rain damage and prepare various support measures."