Minister Lee Young and Chairman Kim Juhyun Hold Meeting with Small and Medium Enterprise Industry
[Asia Economy Reporter Yu Je-hoon] The Ministry of SMEs and Startups and the Financial Services Commission will provide policy financing worth 80 trillion won to small and medium-sized enterprises (SMEs) this year to overcome the complex crisis.
On the 11th, the Ministry of SMEs and Startups and the Financial Services Commission held a 'SME Financial Support Meeting to Overcome the Complex Crisis' at the SME Distribution Center in Yangcheon-gu, Seoul, together with policy financial institutions and SME-related associations and organizations, announcing the direction of policy financing supply. The event was attended by Lee Young, Minister of SMEs and Startups, Kim Ju-hyun, Chairman of the Financial Services Commission, representatives from policy financial institutions (such as the Industrial Bank of Korea and Korea Credit Guarantee Fund), the banking sector (Korea Federation of Banks), and industry (Korea Federation of SMEs).
According to the Ministry of SMEs and Startups and the Financial Services Commission, the policy financing to be injected into SMEs this year amounts to over 80 trillion won, including 50 trillion won under the jurisdiction of the Financial Services Commission and 30 trillion won under the Ministry of SMEs and Startups. The two agencies plan to provide 22.8 trillion won to respond to SMEs' cost burdens caused by high interest rates, inflation, and exchange rates, as well as to supply funds to export companies. Additionally, 52.3 trillion won will be supported for fostering innovative industries and the growth of startups and venture companies.
Furthermore, 8.9 trillion won will be invested to ease the debt burden of vulnerable companies, support their recovery by improving systems, and provide funds. The two agencies plan to launch most programs within this month to quickly supply support funds to the market and will monitor the economic situation and the pace of fund depletion while considering additional support.
The banking sector is also preparing voluntary support measures for SMEs. Despite difficulties in raising funds, they plan to maintain new fund supply to SMEs at levels similar to previous years, minimize bond recovery, and prepare special programs to alleviate high interest burdens on companies and fixed-rate loan products in consideration of the recent rise in interest rates.
Minister Lee said, "As the recent interest rate hikes have made the financial environment difficult for SMEs, the role of policy financing to ease financial cost burdens and facilitate smooth fund procurement has become important," adding, "We will swiftly implement programs worth 30 trillion won under the Ministry of SMEs and Startups to quickly alleviate the difficulties faced by SMEs."
Chairman Kim also stated, "Through this 80 trillion won financial support, we will ease the financial usage burdens of companies struggling with the three-high phenomenon, focus on supporting export companies, and support the growth and structural innovation of future innovation sector companies and startups and venture companies to lay the foundation for securing future competitiveness," adding, "The government and the financial sector will work together to support and improve systems for the leap forward of SMEs."
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