SME agency allocates 100 billion won emergency fund for FX, disaster-hit firms
In short
The Korea SMEs and Startups Agency (KOSME) said it has newly allocated 100 billion won in an Emergency Management Stabilization Fund for small and mid-sized firms hit by exchange-rate swings and natural disasters. Loans are capped at 1 billion won per company, with a two-year grace period and three-year repayment. Firms damaged by recent heavy rain in Geoje and Tongyeong, both declared special disaster zones, get a 1.5 percent fixed rate.
Read the full story 1 min read
The Korea SMEs and Startups Agency (KOSME) said on October 6 that it has newly allocated 100 billion won for an Emergency Management Stabilization Fund to support small and mid-sized venture companies facing business difficulties from exchange-rate swings and disasters. The fund is a policy loan program intended to help such firms normalize operations. Chosun Ilbo and Asia Economy described the move as a response to prolonged external uncertainty, exchange-rate damage and losses from natural disasters. [ 1 , 3 , 4 ]
According to the agency, the loan limit is up to 1 billion won per company, with a two-year grace period followed by three years of installment repayment. Firms damaged by exchange-rate moves are charged the policy fund base rate, on a floating basis, plus 0.5 percentage points. Firms in Geoje and Tongyeong — declared special disaster zones after recent heavy rain — receive a 1.5 percent fixed-rate exception intended to reduce their financial burden. [ 1 , 4 ]
Applications are made through KOSME’s website, and the agency decides whether to provide support after reviewing conditions and conducting an on-site inspection, Yonhap reported. [ 1 ]
KOSME chairman Kang Seok-jin said the agency listens to voices from the field and provides policy funds so that small and mid-sized firms in crisis can recover, adding that it would do its utmost to make this support a “supporting post” for small and mid-sized venture companies struggling with exchange-rate swings or disasters. [ 1 , 4 ]
Why it matters
The fund is a government-backed liquidity measure aimed at small and mid-sized companies facing pressure from a weak won and from disaster damage, so it indicates which groups policymakers currently see as stressed. Directly, it offers cheap credit to affected firms, a small fraction of which are in the two designated disaster areas.
Key facts
- The Korea SMEs and Startups Agency (KOSME) newly allocated 100 billion won for an Emergency Management Stabilization Fund for small and mid-sized venture companies in financial difficulty. [ 1 , 2 , 3 , 4 ]
- The loan limit is up to 1 billion won per company, with a two-year grace period followed by three-year installment repayment. [ 1 , 3 , 4 ]
- Firms hit by exchange-rate swings are charged the policy fund base rate plus 0.5 percentage points. [ 1 , 4 ]
- Firms in Geoje and Tongyeong, declared special disaster zones after recent heavy rain, receive a 1.5 percent fixed-rate exception. [ 1 , 4 ]
- Applications are made on KOSME’s website, and support is decided after a review of conditions and an on-site inspection. [ 1 ]
- KOSME chairman Kang Seok-jin said the support should serve as a “supporting post” for small and mid-sized venture firms struggling with exchange-rate swings or disasters. [ 1 , 4 ]
Confirmed by several sources
- KOSME newly allocated 100 billion won for an emergency management stabilization fund. [ 1 , 2 , 3 , 4 ]
- The loan ceiling is 1 billion won per company with a two-year grace period and three-year repayment. [ 1 , 3 , 4 ]
- Exchange-rate-hit firms pay the policy fund base rate plus 0.5 percentage points, while Geoje and Tongyeong disaster-area firms get a 1.5 percent fixed rate. [ 1 , 4 ]
- KOSME chairman Kang Seok-jin commented on the program. [ 1 , 4 ]
Still unclear
- The application period, deadline and total number of firms expected to receive funds are not stated. The documents describe eligibility and loan terms but give no timetable or beneficiary estimate.
- One outlet’s feed title refers to the 100 billion won emergency fund, but the body text carried with it concerns an unrelated police investigation into bank hacking. The mismatched text means that outlet could not be used for details beyond the fund’s existence and size.
What local media are saying
Timeline, local time
- Yonhap publishes the agency’s announcement of the 100 billion won emergency fund, with loan terms and the chairman’s comments. [ 1 ]
- Newsis and Chosun Ilbo report the 100 billion won allocation in their morning feeds. [ 2 , 3 ]
- Asia Economy publishes the details, including the 1 billion won per-company limit and the 1.5 percent fixed rate for Geoje and Tongyeong. [ 4 ]