[Asia Economy Reporter Kim Bo-kyung] On the 22nd, the small and medium-sized enterprises (SME) sector stated that the Democratic Party of Korea's decision to extend loan maturities will "greatly help resolve liquidity crises and stabilize management."
The Korea Federation of SMEs issued a statement on the same day, saying, "The SME sector welcomes the Democratic Party of Korea's decision to further extend loan maturities for SMEs and small business owners."
The Federation evaluated, "The measures such as loan maturity extensions implemented twice last year played a significant role in helping SMEs and small business owners overcome liquidity crises caused by a sharp decline in sales due to the prolonged COVID-19 pandemic."
However, as the COVID-19 situation continues this year, it is expected that the management conditions of SMEs and small business owners will not easily improve.
According to the 2021 business outlook survey conducted by the Federation, 48% of respondents said that the business environment this year will be more difficult than last year. Additionally, 42% responded that it would be similar to last year.
The Federation stated, "The additional extension of the loan maturity extension measures will be a great help in resolving liquidity crises and stabilizing management for SMEs and small business owners who worry about survival day by day and consider temporary closure or business shutdown."
They also proposed establishing a 'SME and Small Business Financial Difficulty Reporting Center (tentative name)' jointly with the SME sector. This is to set up an organization that can inspect the field and identify difficulties to enhance the effectiveness of the current measures.
Finally, they emphasized, "Since the COVID-19 situation is a national disaster, despite the difficulties, the SME sector will unite and do its best to create jobs and achieve economic revitalization."
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