Large Firms Told to Raise Funds on Their Own
Financial Services Commission Vice Chairman Sohn Byung-doo remarked on April 2 that large corporations need to focus on financing in the market and maximum utilization of internal reserves and available assets, rather than assistance from the government, in dealing with the impact of COVID-19.
His remark is somewhat contrary to the government’s recent announcement. The government recently said that its emergency financial support, which totals more than 100 trillion won, would include large corporations as beneficiaries. It is said that his remark reflects the current administration’s anti-conglomerate sentiment and the government is wary of opposition from the public with general elections around the corner.
Meanwhile, the U.S. government is providing huge support for enterprises affected by the pandemic, examples of which include US$50 billion for airlines. In South Korea, on the other hand, Korea Development Bank is maintaining a neutral stance while HDC Hyundai Development Company, which is planning to take over Asiana Airlines, is asking the bank to change its debt repayment schedule.