Operation of Damage Reception Desks Including Corporate Support System and Gwangju TP Crisis Support Center
Emergency Injection of 5 Billion KRW in Corporate Support Policy Funds and Special Guarantee Support by Gwangju Shinbo
Gwangju Metropolitan City (Mayor Kang Ki-jung) recently discussed support measures to respond to the crisis faced by local partner companies due to the Daewoo Winia Group affiliate's application for corporate rehabilitation procedures (court receivership).
The day before, Gwangju held a meeting attended by Kim Kwang-jin, Deputy Mayor of Culture and Economy of Gwangju, and other city officials, along with financial institutions such as Industrial Bank of Korea, Korea Development Bank, Gwangju Bank, Hana Bank, and Shinhan Bank, as well as local business support organizations including the Gwangju-Jeonnam Small and Medium Venture Business Administration, Small and Medium Business Corporation Gwangju Regional Headquarters, Gwangju Credit Guarantee Foundation, Korea Technology Finance Corporation, and Gwangju Technopark.
At the meeting, the difficulties faced by local small and medium-sized partner companies were heard, and measures to minimize damage to the local economy were discussed.
The Winia partner company delegation requested financial institutions to prioritize converting discounted electronic promissory notes maturing soon into loans. They also proposed extending the maturity of guarantees and loans with the Credit Guarantee Fund, Korea Technology Finance Corporation, and Small and Medium Business Corporation.
In response, financial institutions and related organizations agreed to cooperate as much as possible to overcome the local economic crisis.
Additionally, Winia partner companies requested that Gwangju prioritize providing policy funds to partner companies in crisis and apply low-interest rates.
They emphasized that the operation of Winia Group factories is essential for the survival of second- and third-tier partner companies and asked the city to play a role in ensuring the corporate rehabilitation process proceeds quickly following the court receivership application.
Deputy Mayor Kim Kwang-jin expressed his determination to first assess the scale of damage to local partner companies and to do his best to minimize economic damage in cooperation with financial institutions and related organizations.
In this regard, Gwangju plans to submit a statement to the court requesting that the company be given a chance for rehabilitation considering the local economy. Furthermore, the city intends to urgently provide 5 billion KRW in corporate support policy funds and support through special guarantees from the Gwangju Credit Guarantee Foundation.
As a result of the meeting, it was decided to request the Ministry of SMEs and Startups to submit official data on Daewoo Winia Group’s partner companies and payment amounts and to urge the swift progress of corporate rehabilitation. The city also plans to ask the ministry to consider designating the area as a special support zone for small and medium enterprises.
Gwangju will form a working-level consultative body with related organizations such as Gwangju Technopark, Korea Mold Industry Promotion Association, Korea Electronics Technology Institute, Gwangju Credit Guarantee Foundation, Gwangju Economic Promotion and Win-Win Job Foundation, Gwangju-Jeonnam Regional Small and Medium Venture Business Administration, Small and Medium Business Corporation Gwangju Regional Headquarters, Gwangju Chamber of Commerce and Industry, and Gwangju Employers Federation to identify difficulties faced by affected partner companies and continuously discuss possible support measures by each institution.
Gwangju has opened a Daewoo Winia Group affiliate court receivership damage reporting center on the Gwangju City Enterprise Support System and urged small and medium partner companies hesitant to report due to concerns about secondary damage to use the safe online damage reporting window. The Gwangju Technopark Crisis Support Center will also accept damage reports.
Tax support measures such as extensions of local tax deadlines and deferrals of collection are also planned.
Currently, there are about 150 Daewoo Winia local partner companies, and the scale of damage is being assessed through related organizations and partner companies.
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