Jungjingong Implements Special Maturity Extension and Repayment Deferral for COVID-19 Affected Companies

Preferential Support Including Waiver of Additional Interest Rate and Exclusion of Minimum Principal Repayment Requirement Due to Maturity Extension

[Asia Economy Reporter Kim Cheol-hyun] The Ministry of SMEs and Startups (hereinafter referred to as the Ministry) and the Small and Medium Business Corporation (Chairman Kim Hak-do, hereinafter referred to as SBC) announced on the 26th that they will implement special maturity extensions and special repayment deferrals for SBC loans with principal repayments due by September 30 to overcome liquidity crises caused by the novel coronavirus infection (COVID-19).

Last year, the Ministry and SBC supported 1,569 cases (208.5 billion KRW) of special maturity extensions and 3,293 cases (78.2 billion KRW) of special repayment deferrals for small and medium enterprises experiencing liquidity crises due to COVID-19 damage.

This special maturity extension and special repayment deferral will be available for four months from May 1 to May 31 for small and medium enterprises affected by COVID-19, such as manufacturing and distribution SMEs suffering from production delays and delivery postponements of major clients. Unlike the existing general maturity extension, the special maturity extension offers preferential support by exempting additional interest rates due to maturity extension and waiving minimum principal repayment requirements. The special repayment deferral also provides preferential support by waiving minimum principal repayment requirements and expanding the maximum number of applications.

For detailed information regarding applications for special maturity extensions and special repayment deferrals, inquiries can be made to one of SBC’s 32 regional headquarters or the SME Integrated Call Center. Chairman Kim Hak-do stated, "Including support for companies affected by COVID-19 last year, we extended loan maturities totaling 700 billion KRW to help resolve liquidity crises for SMEs," adding, "This year as well, we will provide proactive and swift support to help SMEs overcome difficulties as soon as possible."