Thursday, April 9, 2020
Korean Government to Provide Over 100 Tril. Won to Help Enterprises and Small Businesses
To Prevent Companies from Going Under
Korean Government to Provide Over 100 Tril. Won to Help Enterprises and Small Businesses
  • By Jung Suk-yee
  • March 25, 2020, 09:02
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South Korean President Moon Jae-in presides over an emergency economic meeting on March 24.

South Korean President Moon Jae-in held an emergency economic meeting on March 24 and said that the government decided to spend 100.1 trillion won to save enterprises and businesses. The amount has been doubled from that of the previous meeting.

Specifically, 48.5 trillion won will go to money markets such as securities, bond and commercial paper and a bond market stabilization fund of 20 trillion won instead of 10 trillion won will be prepared. The measures are scheduled to take effect next month.

In addition, 17.8 trillion won will be supplied to help companies issue debentures. Assistance will be given to corporate bond underwriters by means of primary collateralized bond obligations, prompt underwriting, etc. The amount for the purposes has been increased from 6.7 trillion won to 11.1 trillion won.

A total of 29.1 trillion won is scheduled to go to non-large companies. Guarantee supply has been expanded to 7.9 trillion won and loan assistance via government-run financial institutions has been raised by 21.2 trillion won. The president remarked that the measures will also cover large corporations if necessary so that temporarily underfinanced companies can be prevented from going under.

A securities market stabilization fund of 10.7 trillion won will be prepared to prop up the stock market. Those assistance measures for enterprises total 77.6 trillion won with a financial assistance of 22.5 trillion won for small businesses already prepared at the previous meeting.