Shinbo to Provide Additional 1.5 Trillion KRW Special Guarantees Using 4th Supplementary Budget Funds
Yoon Dae-hee, Chairman of the Korea Credit Guarantee Fund (second from the left), visited Wooshin Steel located in Yeongcheon-si, Gyeongbuk on the 20th to hear firsthand the voices of businesses affected by COVID-19.
[Asia Economy Reporter Park Sun-mi] Yoon Dae-hee, Chairman of the Korea Credit Guarantee Fund, inspected the support status of the ‘COVID-19 Special Guarantee for Affected Companies’ under the 4th supplementary budget (additional supplementary budget) to support companies affected by the prolonged COVID-19 pandemic.
According to the Credit Guarantee Fund on the 21st, Chairman Yoon visited Wooshin Steel, a steel product manufacturer located in Yeongcheon, Gyeongbuk, the day before to listen to on-site difficulties and discuss support measures for affected companies. Wooshin Steel produces cold-rolled steel products used in manufacturing bolts and nuts for automobiles, and amid the decrease in export volume due to the prolonged COVID-19 situation, it recently secured liquidity by utilizing the Fund’s special guarantee.
Chairman Yoon said, “The Credit Guarantee Fund is making various efforts to overcome the national economic crisis caused by COVID-19 and to provide support that affected companies can feel,” adding, “As a policy institution, we will spare no effort to provide prompt and active support so that affected companies can overcome the COVID-19 crisis and grow again.”
The Fund has supplied about 1.4 trillion KRW in special guarantees since February this year to support small and medium-sized enterprises struggling due to the COVID-19 crisis, and is currently supplying an additional approximately 1.5 trillion KRW in special guarantees using funds secured through the 4th supplementary budget in September. This special guarantee also applies preferential measures such as increasing the guarantee ratio to a favorable 95% compared to general guarantees to alleviate the financial burden on affected companies, and reducing guarantee fees (a 0.3%p reduction in guarantee fee rate and a maximum 1% guarantee fee rate cap). The Fund plans to relax screening criteria, simplify screening procedures including screening methods and approval authority, to ensure prompt guarantee support for affected companies.
Due to the prolonged COVID-19 pandemic, the funding demand of affected small and medium-sized enterprises continues to increase steadily. The special guarantee conducted on the 28th of last month achieved support results of 1,299 cases and 243.9 billion KRW in less than a month since its implementation.
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