3rd Ministerial Meeting on boosting the Economy in 2020
4th Ministerial Meeting on the Economy in 2020
Government to Address Auto Parts Shortages
Caused by Novel Coronavirus Outbreak
Deputy Prime Minister Hong Nam-ki presided over the 4th Ministerial Meeting on the Economy held on February 7, that is, the 3rd Ministerial Meeting on Boosting the Economy. Measures to deal with auto parts shortages caused by the novel coronavirus outbreak were main topics of discussion, along with plans to provide financial support for businesses affected.
The following is a summary of Deputy Prime Minister Hong’s keynote address.
Measures to deal with auto parts shortages
The country’s car manufacturers have been affected by the disease outbreak as their parts producing facilities in China had to be closed. The government will work on the resuming of the production in those facilities in China as it will work actively with the Chinese regional governments, as well as will work to help find alternatives.
- Have been contacting the Chinese regional governments regarding our plans for disease control and prevention in those facilities
- Work on the shipping process required in China, run a 24 hour customs clearance in Korea and allow import declaration before arrival
- Help increase parts production in Korea: Approve extended workhours, help find extra labor force needed and provide financial support for facilities investment
- Provide fast clearance for supplies imported from countries other than China, and promote the development of alternatives as the government will offer short-term R&D support and fast licensing
In the mid- to long-term, the government will promote the domestic production of the parts of which the supplies will likely become unstable again. We will also support companies when they work on smart factories, higher productivity and high value-added parts.
Financial support for businesses affected
Following the tax and customs supports announced at the February-5 meeting, the government has decided to provide a total of 2 trillion won worth of financial support for SMEs and small merchants.
- Provide SMEs with 1.9 trillion won of financial support through low-interest rate loans
- Give an extension on loans and guarantees borrowed from state-owned financial institutions for up to one year, as well as repayment extension for up to one year
- Provide small merchants with low-interest rate loans worth 20 billion won and guarantees worth 100 billion won with favorable conditions, as well as provide 55 billion won worth of loans exclusively for old-fashioned market merchants
- Work with private sector financial institutions on low-interest rate loans
The government will continue to work on industry-specific support, including tourism support.
Please refer to the attached pdf