Gyeonggi Province Launches Comprehensive Emergency Financial Support Package of 5.2 Trillion Won
Suwon NewsUpdated 2020.04.13 09:25
Published 2020.04.13 06:24
Updated 2020.04.13 09:25
Special support targeting small and medium-sized enterprises and small businesses within the province...expanded funds and guarantees, early debt write-offsCorona 19 special fund increased from 200 billion won to 1.12 trillion wonGyeonggi Credit Guarantee Foundation's Corona 19 special guarantee expanded by 920 billion won to 4.03 trillion wonEarly write-off of 441 billion won in non-performing debt supports 3,088 people with rapid business recovery
[Suwon Ilbo=Reporter Park No-hoon] Gyeonggi Province announced on the 13th that it will implement a comprehensive emergency financial support package worth a total of 5.2 trillion won, including expansion of special operating funds and guarantees and early write-off of non-performing debt for small and medium-sized enterprises and small businesses in the province.
This initiative aims to implement swift financial measures for small and medium-sized enterprises and small businesses that have suffered economic damage due to the spread of COVID-19, thereby revitalizing the local economy and domestic consumption market.
The province will first expand the scale of 'Corona 19 Special Operating Fund' from the original 200 billion won to a total of 1.12 trillion won, an increase of 920 billion won. This accounts for approximately 56% of the total 2 trillion won in small and medium-sized enterprise fostering funds for 2020, effectively converting all available funds except approximately 800 billion won in facility funds into Corona 19 special funds.
Previously, the province increased the 'Corona Special Support Fund,' which was initially 70 billion won in February due to surging fund demand, to 200 billion won. However, as concerns grew about increased economic damage due to the prolonged COVID-19 pandemic, the province reflected business expenses in the 2020 first supplementary budget and implemented this special measure.
Support for small and medium-sized enterprises has been increased from 150 billion won to 520 billion won, while support for small businesses has been increased from 50 billion won to 400 billion won. Additionally, 200 billion won in reserves will be allocated to respond proactively to rapidly changing economic conditions.
Support targets are small and medium-sized enterprises and small businesses in the province that have suffered direct or indirect damage from COVID-19. Support will be provided up to a maximum of 500 million won per small and medium-sized enterprise and up to 100 million won for small businesses.
In addition to this expansion of special funds, the scale of special guarantees through the Gyeonggi Credit Guarantee Foundation will also be expanded from the existing 3.11 trillion won by 920 billion won to 4.03 trillion won, addressing the liquidity crisis of small businesses and small and medium-sized enterprises.
Furthermore, in light of the difficult economic conditions caused by COVID-19, the Gyeonggi Credit Guarantee Foundation will accelerate the timing of non-performing debt write-offs from June to April 13. Through this, the foundation will write off a total of 441 billion won in debt for 3,088 debtors, supporting rapid business recovery.
Kim Gyu-sik, Economic Planning Officer, stated, "We expect this measure to provide stable financial support to small and medium-sized enterprises and small businesses affected by COVID-19, opening up breathing room for the local economy in the province," adding, "Going forward, we will continue to develop swift and accurate measures to minimize economic damage."
Meanwhile, applications for Corona 19 special funds and special guarantees are available through 23 branches of the Gyeonggi Credit Guarantee Foundation and the Gyeonggi Small and Medium-sized Enterprise Fostering Fund website (g-money.gg.go.kr), and consultations and applications can also be made at approximately 1,300 branches of six major commercial banks (Corporate, KB Kookmin, NH Nonghyup, Shinhan, Woori, and Hana).
Inquiries regarding debt write-offs by the Gyeonggi Credit Guarantee Foundation are available through the Gyeonggi Credit Guarantee Foundation's cyber guarantee website (www.gcgf.or.kr/cyber).
Inquiries regarding debt write-offs by the Gyeonggi Credit Guarantee Foundation are available through the Gyeonggi Credit Guarantee Foundation's cyber guarantee website (www.gcgf.or.kr/cyber).
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