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Today: Jun 14, 2024

South Korea readies $57B program for corporate financial reinforcements.

1 min read

TLDR:

  • South Korea has prepared a financial support program of $56.97 billion for companies increasing investment in key sectors and small businesses struggling with the impact of high interest rates.
  • The program includes cheap policy loans from a state-run bank for key industries and support from commercial banks for small and medium-sized businesses.
  • Banks will offer a temporary cut in interest rates for companies facing liquidity trouble due to high interest rates.
  • Evolving trade relations with China, technological advancement in major industries, and fragmentation of global supply chains pose new challenges to companies, raising the need for regulatory reform and financial support.

South Korea has announced a financial support program of $56.97 billion for companies increasing investment in key sectors and small businesses struggling with the impact of high interest rates. The program includes 15 trillion won worth of cheap policy loans from a state-run bank for key industries such as semiconductor and battery. Commercial banks will also provide 20 trillion won to support small and medium-sized businesses. Chairman Kim Joo-hyun emphasized the need for banks to expand support for companies beyond consumer financing focused on mortgage loans. Evolving trade relations with China, technological advancement in major industries, and fragmentation of global supply chains pose new challenges to companies, raising the need for regulatory reform and financial support. For companies facing liquidity trouble this year due to high interest rates, banks will offer a temporary cut in interest rates.