Annual Fixed Interest Rate of 1.9%
Up to KRW 1 Billion per Company Within Damage Amount
On July 20, the Korea SMEs and Startups Agency (Jungjingong) announced that it will provide disaster relief funds using the 'Ambulance Man System' to support companies affected by abnormal summer weather conditions.
The Ministry of the Interior and Safety issued a heavy rain warning mainly for the southern Gyeonggi and Chungcheong regions, and on July 17, the Central Disaster and Safety Countermeasures Headquarters raised its emergency response level from Level 1 to Level 3. Following the upgrade to Level 3, the heavy rain crisis alert level was also raised from 'Caution' to 'Severe'.
Accordingly, Jungjingong will provide direct loans for emergency management stabilization funds (disaster relief) needed for the recovery of disaster-affected companies through the 'Ambulance Man System'. The 'Ambulance Man System' deploys more than 100 field expert evaluators, called Ambulance Men, across the country to assess affected companies and make a support decision within five days of the evaluation.
Disaster relief funds can be applied for at any time, not just during regular application periods. The loan terms are a two-year grace period with repayment in installments over three years, and a fixed interest rate of 1.9% applies. The loan limit is up to KRW 1 billion per company within the amount of damage (up to KRW 1.5 billion over three years).
Kang Seokjin, Chairman of Jungjingong, stated, "We will make every effort to provide financial support so that small and medium-sized enterprises affected by unexpected heavy rains can recover quickly," adding, "We will spare no support to ensure that our assistance is truly helpful on the ground."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
