S. Korea to extend maturity on gov't loans for small businesses until next March
Updated: 2021-09-16 09:28:02 KST
South Korea is to extend the maturity on government loans for small businesses and mom-and-pop stores.
Finance Minister Hong Nam-ki announced at an emergency economic meeting on Thursday that he'll defer the principal repayments for small firms for 6 months until next March.
He said this extension of the due date is for loans borrowed from government institutions including the Korea SMEs and Startups Agency and Small Enterprise and Market Service.
This is on top of the debt relief measures provided through banks and other financial institutions, which were announced on Wednesday by the Financial Services Commission.
The government also plans to support borrowers by coming up with a long-term repayment plan and adjusting principal and interest payments for those struggling to repay their loans.
And the ministry said it will expand funds for unsecured loans for small travel agencies who were hit especially hard by the pandemic.
It will be increased from the current 43 million U.S. dollars to 85 million dollars next year.
To boost consumer spending, the ministry said it would expand its cashback scheme on credit card payments so that consumers can also get cashback for online purchases.
The system gives consumers up to 100-thousand won or about 85 dollars cash back per month, if they spend at least 3 percent more on their credit cards than their average monthly consumption in the second half of last year.
This is to start from October and the ministry is to provide details after the Chuseok holiday.
It will also come up with a 'National Food Plan' to establish a sustainable production, distribution and consumption system in the country.
The minister stressed the significance of the food plan at a national level as securing essential food including rice is an important issue in terms of the country's security and health.
Eum Ji-young, Arirang News.