The Financial Services Commission held a meeting with the Ministry of SMEs and Startups (MSS), related organizations, and financial industry associations on July 29 to seek close cooperation from the financial industry to help minimize the damage caused by recent payment delays from e-commerce platforms (TMON and WeMakePrice).

First, the FSC and the MSS requested that maturity extension and payment deferment on existing loans to be made available to the vendors affected by payment delays. In this regard, all financial sectors and policy financial institutions agreed to provide up to one year of maturity extension and payment deferment on their existing loans. Maturity extension will also be provided to vendors on existing e-commerce seller loans to ensure that they face no risk of credit downgrading.

Second, the FSC plans to make available emergency funds worth KRW300 billion-plus in the form of guaranteed loans offered by Korea Credit Guarantee Fund and Industrial Bank of Korea (IBK) to facilitate low interest financing of SMEs temporarily having liquidity problems due to payment delays. Specific details of the guaranteed loan support program will be determined for announcement in coming days.

Third, the MSS plans to provide policy financing support worth about KRW200 billion to assist small merchants and SMEs affected by payment delays.

Fourth, the Ministry of culture, Sports and Tourism will operate an interest rate support program (2.5 to 3.0%p) in the amount of about KRW60 billion to help tourism businesses.

The government, related organizations, and industry groups will operate an emergency response team to make sure that the financial support programs are effectively operated and the affected businesses can get support through proper channels.

* Please refer to the attached PDF for details.