【Youth Daily】 The government will expand financial support for parts suppliers that are struggling with Ssangyong Motor’s lack of liquidity.
Proactive support is provided by extending the maturity of loans and delaying repayment of principal and interest.
On the morning of the 29th, the government held the 26th Industrial Competitiveness Enhancement Ministers’ Meeting, presided over by Deputy Prime Minister Hong Nam-ki and Minister of Strategy and Finance, at the Government Complex in Seoul, and prepared a plan to support Ssangyong Motor’s parts companies partner companies.
Specifically, policy financial institutions and commercial banks decided to actively support the extension of maturity and deferment of repayment of principal and interest.
Commercial banks and policy financial institutions plan to provide maximum support based on the currently in effect’Guidelines for extending the maturity of loan principal repayment and deferring interest repayment’.
This guideline is intended to support small and medium-sized businesses and small business owners who have directly or indirectly suffered damage from the novel coronavirus infection (Corona 19) if there is no delinquency such as arrears of principal and interest, capital erosion, and closure of business, and will be enforced until March.
In addition, partner companies experiencing temporary management difficulties will use policy financing programs such as Korea Development Bank, IBK, Credit Guarantee Fund, Technology Guarantee Fund, and Small and Medium Venture Business Corporation to support liquidity.
Support programs currently in operation for all major industry partners such as automobiles are utilized, and program reforms are also promoted if necessary.
Earlier, in the case of Saneun’s’Give it up, Korea’ program, the limit was increased by 500 billion won after applying for the rehabilitation of Ssangyong Motors last December. If necessary, it will also consider ways to secure additional limits.
Shinbo plans to provide emergency liquidity support for business partners who are experiencing difficulties in management due to repayment of bills issued by Ssangyong Motor.
Middle Vacuum has decided to provide exclusive funds of 50 billion won to companies with excellent technical and business feasibility among suppliers that are experiencing temporary management difficulties. It also provides special maturity extensions for existing loan support partners.
Kibo plans to provide a guarantee to support management improvement to companies with high growth potential among suppliers that are experiencing temporary management difficulties due to overdue payments.
The National Tax Service and the Korea Customs Service extend the deadline for payment of national taxes, actively support postponement of foreclosures and sales, support for unsecured tariff delivery, and support for installment payments to alleviate the management burden of business partners experiencing temporary management difficulties.
On the same day, the government received a report on the trend of negotiations to attract investment for Ssangyong Motor.
Ssangyong Motor, having a hard time finding a new owner, finally decided to enter the P plan (Pre-packaged Plan).
The P plan is a method in which a creditor or a debtor who has obtained the consent of the creditor who has a debt equivalent to more than half of the debtor’s debt submits a preliminary rehabilitation plan before the commencement of the rehabilitation procedure and obtains approval through a court hearing and resolution accordingly.
Since a rehabilitation plan has been prepared in advance and then the legal management is undertaken, the rehabilitation period can be shortened compared to the normal rehabilitation procedure that takes more than four months to submit a rehabilitation plan. It is reported that Ssangyong Motor has set a goal of completing the P plan by the end of April.
【Youth Daily = Reporter Lee Seung-gu】