The Bank of Korea Provides 9 Trillion Won Special Support for SMEs through Financial Intermediation Support Loans

Temporary implementation for 6 months from July 1 to December 31
Contributing to easing SME financial cost burden and improving financial accessibility

The Financial Monetary Policy Committee of the Bank of Korea announced on the 11th that it will provide temporary special support to small and medium-sized enterprises (SMEs) by utilizing the reserved portion of 9 trillion won from the financial intermediation support loan limit secured through a resolution at the end of November last year.

The Monetary Policy Committee explained that, given the expectation that the monetary tightening stance will continue for a prolonged period, and with increasing financial cost burdens, the funding conditions and procurement environment are becoming difficult, especially for vulnerable industries and SMEs located in provincial areas, thus deeming proactive support necessary.

The support will be provided for six months from the 1st of next month until July 31. Financial institutions (banks) that meet pre-set conditions (such as industry type, credit rating, etc.) will be temporarily supported with funds based on their SME loan performance.

In particular, considering the difficulties faced by provincial SMEs, 80% of the total limit (7.2 trillion won) will be allocated to the Bank of Korea's 15 regional headquarters, and detailed operational standards will be established and supported within this limit according to the funding conditions of SMEs in each jurisdiction.

A Bank of Korea official stated, "Through this measure, we expect to contribute to alleviating the financial cost burden and improving financial accessibility for SMEs struggling under the tightening stance."