The Korea Technology Finance Corporation (Chairman Jong-ho Kim, hereinafter referred to as “KIBO”) announced that it will implement “special accident measures” starting on Monday, the 28th of this month to support the normalization of management of small and medium-sized enterprises in areas damaged by heavy rain that have been declared special disaster zones.
This special measure was created to prevent small and medium-sized enterprises that suffered damage from the recent heavy rains from being classified as insolvent due to temporary management difficulties and to support their rapid return to normal.
The target of application is small and medium-sized enterprises with business sites in special disaster areas affected by heavy rain announced by the Ministry of the Interior and Safety, and whose damage has been confirmed through a ‘Disaster Small and Medium-sized Enterprise Confirmation’, etc.
Companies subject to special measures will not only be granted a deferral of processing of insolvent companies, but will also be granted a deferral of claims preservation measures such as attachments and provisional dispositions enforced by the Korea Credit Guarantee Fund.
The main reasons for the application of the deferral of the insolvent company processing are ▲non-payment of principal and interest on a guaranteed loan ▲infringement of rights such as seizure, provisional seizure, or provisional disposition of a business premises ▲default in payment of debts and registration of public information with the Korea Credit Information Service ▲deterioration of the credit of the representative, etc. However, cases where it is objectively judged difficult to normalize, such as notification of a guarantee accident by a creditor bank or an auction of a business premises, are excluded from the application.
Kim Jong-ho, CEO of Kibo, said, “I hope that this special disaster relief measure will provide practical help to small and medium-sized enterprises suffering from unexpected disasters to overcome management difficulties and get back on their feet,” and added, “Kibo will continue to assess the damage situation and actively support small and medium-sized enterprises’ speedy normalization and business reconstruction through various support measures.”
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