Kibo Implements Special Accident Measures for SMEs in Heavy Rain Disaster Areas to Prevent Insolvency

Deferment of Creditor Protection Measures

On July 28, Korea Technology Finance Corporation (Kibo) announced that it would implement a "special accident measure" to support the normalization of business operations for small and medium-sized enterprises (SMEs) in areas declared as special disaster zones due to heavy rainfall.

This special measure has been prepared to prevent SMEs affected by the recent torrential rains from being classified as insolvent companies due to temporary business difficulties, and to support their prompt normalization. The measure applies to SMEs located in special disaster zones announced by the Ministry of the Interior and Safety, and whose damages have been confirmed through documents such as a "Disaster SME Confirmation Certificate."

Companies subject to this special measure can benefit not only from a deferment of insolvency classification, but also from a postponement of creditor protection measures such as provisional seizure or injunctions executed by Kibo. The main reasons for deferment of insolvency classification include: ▲ overdue principal and interest on guaranteed loans ▲ infringement of rights such as seizure, provisional seizure, or injunction on business premises ▲ default and public information registration with Korea Credit Information Services ▲ deterioration of the representative's credit, among others. However, cases where it is objectively determined that normalization is difficult, such as when the guarantee accident is notified by the creditor bank or an auction is in progress on the business premises, are excluded from the scope of application.

Kibo Chairman Kim Jongho stated, "I hope this special accident measure will provide practical help to SMEs struggling with unexpected disasters, enabling them to overcome management difficulties and recover. Kibo will continue to monitor the damage situation and actively support the swift normalization and business recovery of SMEs through various support measures."