Policy Fund Loan Maturity Extended by One Year for SMEs Affected by Heavy Rain

Jungjingong Supports Resolving Financial Difficulties for Affected Companies

Panorama of the Small and Medium Business Corporation

[Asia Economy Reporter Kim Daeseop] The Small and Medium Business Corporation announced on the 12th that it will support a special one-year maturity extension for policy fund loan repayments for small and medium-sized enterprises (SMEs) affected by the recent heavy rains.

SMEs that suffered damage such as factory flooding, operational suspension, or facility destruction due to the heavy rains can report the damage to the relevant local government, obtain a disaster confirmation certificate, and submit it to the Small and Medium Business Corporation to receive support for the special maturity extension of policy funds.

The special maturity extension can be applied for immediately. Applications must be submitted within 30 days from the date of issuance of the disaster confirmation certificate. The Small and Medium Business Corporation plans to actively support the financial difficulties of affected companies by exempting them from a 0.5 percentage point additional interest rate and a minimum 25% repayment requirement associated with the maturity extension for companies affected by the heavy rains.

Kim Hakdo, Director of the Small and Medium Business Corporation, said, "Until July this year, we extended and deferred 477.9 billion won for companies affected by COVID-19 and others to quickly resolve liquidity crises. This time as well, through proactive measures, we will prevent companies affected by the heavy rains from falling into liquidity crises and actively support the rekindling of innovative growth even amid continuous disasters and difficult circumstances."