Vice Minister of Economy: "100 Trillion KRW Loans, Investments, and Guarantees Support for New Deal Companies over 5 Years"

"Next Year a Crucial Time for Leap to Leading Nation... Must Not Miss the Golden Time"

Kim Yong-beom, Vice Minister of Strategy and Finance, is presiding over the "4th Innovation Growth Policy Finance Council" held on the 4th at Korea Development Bank in Yeouido, Seoul.

[Asia Economy Reporter Kwangho Lee] Kim Yong-beom, First Vice Minister of the Ministry of Economy and Finance, stated on the 4th, "From 2021, we plan to provide loans, investments, and guarantee support totaling 100 trillion won over the next five years to companies in the digital and green New Deal sectors."

At the '4th Innovation Growth Policy Finance Council' held at the Korea Development Bank in Yeouido, Seoul, Vice Minister Kim said, "Policy finance will actively contribute to establishing the physical foundation for the successful implementation of the Korean New Deal."

He explained, "We will establish preferential loan programs for small and medium-sized enterprises (SMEs), mid-sized companies, and export companies in the New Deal sectors, and supply investment funds to innovative SMEs and venture companies in areas such as untact, bio, and renewable energy."

Additionally, he added, "We will also provide non-financial support such as attracting private investment and consulting by utilizing the know-how and networks accumulated by policy finance institutions to support the growth of companies in the New Deal sectors from multiple angles."

Vice Minister Kim also mentioned, "To overcome the current COVID-19 crisis, we will continue to provide liquidity support to small business owners and SMEs vulnerable to economic shocks."

He continued, "As the crisis prolongs, concerns about polarization in recovery paths by sector and class are emerging, so support for small business owners and SMEs needs to continue as part of strengthening our economy and social safety net."

He stated, "To prevent healthy companies from closing due to temporary liquidity shortages, we will continue various financial supports for SMEs, including existing COVID-19 response financial support programs."

Vice Minister Kim expressed his intention to accelerate policy finance support for industrial structure innovation and strengthening industrial competitiveness. He emphasized, "First, next year, we will operate various programs to significantly expand support for facility investment to enhance corporate competitiveness."

He added, "Beyond responding to Japan's export restrictions, to respond to the reorganization of the global value chain (GVC) that has accelerated due to COVID-19, we will additionally establish a dedicated fund investing more than 60% in material, parts, and equipment industry companies, and continue momentum to enhance competitiveness by expanding financial support for export companies in this sector."

In particular, he emphasized, "For the BIG3 sectors (system semiconductors, bio-health, future cars), which have decided to promote nurturing measures comparable to the material, parts, and equipment measures as future core industries, we plan to provide full support through customized financing according to each company's needs."

Finally, Vice Minister Kim said, "2021 is a crucial time for our economy to overcome hysteresis, upgrade its growth path, and lay the foundation to leap forward as a leading country in the post-COVID era," and urged, "Policy finance institutions must actively step forward to not miss this golden time."