Businesses Promised W100 Trillion Emergency Funding

The government decided on Tuesday to provide W100 trillion in emergency funding to businesses devastated by the coronavirus epidemic (US$1=W1,246).

The government doubled the total amount from W50 trillion mooted last week, and expanded beneficiaries to add even large conglomerates.

President Moon Jae-in in an emergency monetary policy meeting in Cheong Wa Dae vowed to accomplish everything to "prevent corporate bankruptcies because of COVID-19."

He promised that "healthy and competitive businesses won't close down because of a liquidity crunch" in this unexpected crisis and pledged to add conglomerates in the scope of aid.

The federal government will expand loans and debt guarantees to businesses from W29.2 trillion to W58.3 trillion and make them available even to big businesses like airlines which may have been hit hardest by the epidemic. But conglomerates will need to prove they possess exhausted self-rescue methods before becoming qualified to receive government loans.

Also, the federal government will form a W20-trillion fund to get bonds issued by distressed businesses. Investors more and more shun corporate bonds, exacerbating businesses' cash crunch.

It also announced techniques to stabilize the currency markets, which has plunged thirty percent in the last month, by forming a good W10.7-trillion fund which will be put to use starting early next month.

Business welcomed the government's methods but urged swift implementation and a minimum of bureaucratic holdups.