Tue. Jul 7th, 2020

South Korea will help small businesses with 39 billion dollar

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Seoul, 19 March (HS): South Korea’s President Moon Jae-in on Thursday promised small businesses to provide 39 billion dollars in emergency financing and other incentive measures to handle the coronavirus-affected economy.

The package is the latest in a series of steps taken in recent times to stem the mounting pressure on Asia’s fourth-largest economy, including interest rate cuts, an additional 9.12 billion dollars budget and supply of more dollars.

Moon said the government would issue loan guarantees for companies with annual revenues of less than 78,000 dollars. So that it could be ensured that companies can access and use loans easily.

He said that local commercial banks and savings banks will also allow small businesses to move forward if they could not repay the loan.

Moon said in an emergency economic policy meeting, “We have decided to take measures to prevent small and medium companies and traders from breaking and going bankrupt and to reduce anxiety in the financial sector.”

The Coronavirus crisis has given a major blow to South Korea’s financial markets, businesses and consumer confidence and disrupted manufacturing. Korea Center for Disease Control and Prevention reported 152 new cases of coronavirus on Thursday, taking the country to 8,565 total infections.