Expansion of Joint Financial Support Scope for SMEs with Over 3 Years of Operation Showing Crisis Signs
The Small and Medium Business Corporation announced on the 20th that it has signed a business agreement with the Korea Technology Finance Corporation and the Korea Credit Guarantee Fund Central Association to promote the 'Proactive Voluntary Restructuring Program.'
The Small and Medium Business Corporation's Proactive Voluntary Restructuring Program is a project that has been supporting companies with growth potential but experiencing temporary management crises since 2021, in cooperation with a total of 11 commercial banks and others.
Through this agreement, the Small and Medium Business Corporation, the Korea Technology Finance Corporation, and the Korea Credit Guarantee Fund Central Association agreed to cooperate in promoting proactive restructuring support to prevent innovative small and medium enterprises from going bankrupt due to temporary management difficulties.
In particular, this agreement is significant in that the Small and Medium Business Corporation expanded the scope of support, which had been centered on private banks such as new loans, maturity extensions, and interest rate reductions on existing loans, by cooperating with guarantee institutions.
The main contents of the agreement include ▲ discovering and recommending companies showing crisis signs that can regrow through restructuring ▲ establishing restructuring plans and supplying new liquidity ▲ new guarantees and extensions of guarantee periods.
Lee Jae-pil, Standing Director of the Korea Technology Finance Corporation, said, “Through the establishment of a proactive restructuring support system among policy financial institutions, we will prevent the deterioration of management of crisis companies with excellent growth potential and actively support the sustainable growth of companies through proactive responses.”
Kim Moon-hwan, Director of Corporate Finance at the Small and Medium Business Corporation, also said, “This agreement is meaningful in that it established a cooperative system among policy financial institutions for the rapid normalization of crisis small and medium enterprises,” and emphasized, “Based on close mutual cooperation among financial institutions, we will support the rapid management normalization of crisis small and medium enterprises.”
Meanwhile, the budget scale for this year's Proactive Voluntary Restructuring Program has increased by 46.8 billion KRW compared to the previous year, reaching 114.5 billion KRW. The Small and Medium Business Corporation supports new loans, maturity extensions of existing loans, interest rate adjustments on existing loans, and the establishment of management normalization plans.
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