The Korea Technology Guarantee Fund announced on September 14 that it will implement special measures for small and medium enterprises (SMEs) affected by heavy rain in designated disaster areas.
This initiative aims to prevent SMEs that have suffered from recent heavy rainfall from being classified as insolvent due to temporary management difficulties and to support their swift recovery and stable resumption of business operations.
The measures apply to SMEs located in areas designated as special disaster zones by the Ministry of the Interior and Safety, including Andong (Iljik-myeon, Namsan-myeon, Imha-myeon) and Uiseong in Gyeongbuk, as well as Geoje and Tongyeong in Gyeongnam, provided they have verified their damages through a 'disaster SME confirmation certificate.'
For eligible companies, the processing of guarantee accidents will be postponed for a certain period, even if issues arise such as overdue principal and interest, property seizures, registration of default with the Korea Credit Information Service, or deterioration of the representative's credit.
Additionally, debt preservation measures, including property seizures and provisional dispositions executed by the Fund, will also be postponed, allowing affected companies to focus on normalizing their operations.
However, companies will be excluded from these special measures if their guarantee accident notification has been received by the creditor bank or if auction or public sale procedures for their business premises are underway, indicating that normalization is objectively difficult.
Kwon Hyung-taek, chairman of the Fund, stated, “I hope this measure will assist SMEs struggling due to the heavy rain in quickly recovering from their losses and normalizing their operations. We will continue to closely monitor the situation and spare no effort in supporting affected companies to restore their operational foundations as soon as possible.”
* This article has been translated by AI.
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