Ministry of SMEs and Startups and Financial Services Commission Implement Support Measures for Sellers Affected by Settlement Delays
Support for sellers affected by delayed settlements on Interpark Shopping and AK Mall will be implemented. This includes extensions of existing loan maturities, repayment deferrals, and liquidity support programs from policy financial institutions.
The Ministry of SMEs and Startups, the Financial Services Commission, and other related ministries announced on the 8th that support for sellers affected by delayed settlements on Interpark Shopping and AK Mall will begin on the 9th. This measure was decided following an on-site inspection by the Fair Trade Commission, which revealed that the unpaid settlement amounts not only involved Tmon and Wemakeprice but also Interpark Shopping and AK Mall, totaling approximately 80 billion KRW, indicating a large scale of damage.
Extension of Loan and Guarantee Maturities and Repayment Deferrals
First, companies that have suffered or are expected to suffer damage due to delayed settlements can receive up to a one-year extension of maturity and repayment deferral on existing loans and guarantees. Eligible companies and loans are those with sales after July during the delayed settlement period, holding business or corporate loans from all financial sectors.
Financial institutions will provide support if companies listed on the respective e-commerce platforms prove sales after July through the seller page on the platform’s website. Companies can visit or consult with their financial institution’s branch for guidance.
To receive maturity extension and repayment deferral support, there must be no defaults such as principal or interest arrears or business closure. However, for companies that unexpectedly faced cash flow shortages due to unpaid settlements from Interpark Shopping and AK Mall and inevitably delayed loan repayments, support will be provided even if arrears occurred between July 10 and September 9.
Policy Financial Institutions’ Liquidity Support Programs Also Implemented
From the 9th, Industrial Bank of Korea, Korea Credit Guarantee Fund, and Small Enterprise and Market Service will expand liquidity support targets from the previously affected Tmon and Wemakeprice companies to include those affected by Interpark Commerce and AK Mall.
The Industrial Bank of Korea and Korea Credit Guarantee Fund program supports up to 3 billion KRW per company, limited by the unpaid settlement amount. For amounts up to 300 million KRW per company, guarantee screening is simplified to maximize supply, while for amounts between 300 million KRW and 3 billion KRW, some amount restrictions may apply after company-specific limit assessments.
The Small Enterprise and Market Service program also supports up to 150 million KRW per company, limited by the unpaid settlement amount. It provides direct loans to supply as much as possible within the damage amount. Additionally, considering the difficulties faced by companies affected by unpaid settlements, the Small Enterprise and Market Service and the Korea SMEs and Startups Agency offer a uniform interest rate reduction to 2.5%. The Korea Credit Guarantee Fund and Industrial Bank of Korea program also reduce burdens by applying the lowest guarantee fee (0.5%) and lowering interest rates (3.3% to 4.4%).
Local Governments’ Own Programs Improved, Focusing on Companies with Large Damage
The Ministry of the Interior and Safety has requested cooperation from local governments to expand their own programs as soon as possible. Seoul City will increase the per-company limit for e-commerce settlement damage recovery funds from the current 50 million KRW to 150 million KRW and reduce the interest rate from 3.0% to 2.0%.
Gyeonggi Province will focus the allocation of special management funds for e-commerce damage support on small and medium-sized enterprises with larger damage. Currently, 100 billion KRW is allocated (20 billion KRW for SMEs, 80 billion KRW for small businesses), and this will be improved to focus more on SMEs with greater damage and demand.
Loan Maturity Extension or Repayment Deferral of 155.9 Billion KRW for Tmon Affected Companies
Meanwhile, since the 7th of last month, all financial sectors have been providing maturity extensions and repayment deferrals for general and prepayment loans held by companies affected by Tmon and Wemakeprice. As of the 4th, a total of 1,262 cases (155.9 billion KRW) have been granted up to one year of maturity extension or repayment deferral.
Policy financial institutions began accepting applications for liquidity support programs for Tmon and Wemakeprice affected companies from the 9th of last month, with full-scale execution starting on the 14th of the same month. As of the 4th, a total of 1,470 cases (273.51 billion KRW) were applied for, and 891 cases (133.6 billion KRW) were actually executed.
Policy funds from the Small Enterprise and Market Service and Korea SMEs and Startups Agency apply a uniform interest rate of 2.5% through direct loans. The average loan amount was 290 million KRW for the Korea SMEs and Startups Agency and 38 million KRW for the Small Enterprise and Market Service.
Analysis of the Industrial Bank of Korea and Korea Credit Guarantee Fund program, which uses market-sourced interest rates and varies by company, shows an average loan amount of about 306 million KRW and a maximum loan amount of 3 billion KRW. By actively utilizing the Bank of Korea’s financial intermediary support loan funds, loans are provided at low interest rates averaging 3.95%, including cases with the lowest rate of 3.3%. Although some loans require interest rates above 4.4%, 16% (19 cases) applied the maximum rate of 4.4%, indicating that low-credit companies benefit more.
Related ministries plan to continue close management of companies with high damage amounts (over 100 million KRW) through an emergency response team, as usage (application) rates for liquidity support programs are high among these companies. Affected companies can consult for financial support through each institution’s counseling channels.
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