By Lee Hana
President Moon Jae-in on April 8 announced additional economic stimulus measures at the fourth meeting on the COVID-19 pandemic of the Emergency Economic Council.
"As part of the efforts to turn this crisis into an opportunity, today's fourth Emergency Economic Council meeting will make decisions on how to enhance export vitality, improve domestic demand, and support startups and business ventures," he said, announcing three emergency measures.
The first measure was support for export companies hit by the collapse of global supply chains to ensure additional trade financing worth more than KRW 36 trillion.
"Should importers' credit ratings drop due to the COVID-19 outbreak, it could impede our exports. To prevent this, we will extend the expiration dates of export insurance policies and guarantees for another year as they come due. This will have the same effect as providing KRW 30 trillion to exporters. In addition, emergency funding totaling KRW 1 trillion will be distributed to provide liquidity for export companies," he said.
"We will also preemptively supply more than KRW 5 trillion in trade financing so that domestic businesses will be able to actively engage in winning contracts at a time when the global economic stimulus comes into force."
To revive domestic consumption, the second measure comprised complementary assistance worth KRW 17.7 trillion.
"The public sector will take the initiative to help create over KRW 3.3 trillion worth of demand through advanced payments and purchases. Not only central government ministries and agencies but public institutions, local governments and regional public corporations will all participate in efforts to provide assistance to commercial areas in every corner of the country that are now experiencing difficulties," he said.
"In addition to that, we will decide on special measures today to ease still more tax burdens valued at approximately KRW 12 trillion given that the number of businesses in deficit is increasing as management conditions deteriorate due to the COVID-19 outbreak and nearly seven million individual business owners are suffering increasing losses."
The third measure targeted startups and venture businesses.
"We will supply additional funds worth approximately KRW 2.2 trillion by providing more low-interest loans and boldly expanding incentives to private sector-led venture investments along with the introduction of new special support for guarantees," he said.