Financial relief for firms affected by 2024 Tmon-WeMakePrice crisis
Grace period on principal repayment of emergency stabilization loans extended by 1 year
Firms with short-term arrears of 30 days or less also eligible
Applications accepted through Feb. 26, 2027
The Ministry of SMEs and Startups will extend by one year the grace period on principal repayment of policy loans for small and medium-sized enterprises affected by the Tmon-WeMakePrice crisis.
The ministry announced Wednesday it would implement a "special maturity extension on policy loans for firms affected by the Tmon-WeMakePrice crisis."
The measure comes as repayment deadlines approach for SMEs that received emergency business stabilization loans during the 2024 Tmon-WeMakePrice crisis, raising concerns that their financial burden could intensify.
The ministry disbursed emergency business stabilization loans through its Tmon-WeMakePrice victim support program from September through December 2024. The loans were structured with a two-year principal repayment grace period followed by repayment spread over three years, meaning grace periods for affected firms have been expiring in sequence this year.
Eligible for the special maturity extension are SMEs that received emergency business stabilization loans through the 2024 Tmon-WeMakePrice victim support program. The extension will apply to the Tmon-WeMakePrice support loans those firms received.
Firms that have fallen into short-term arrears of 30 days or less on their SME policy loans are also eligible, extending relief to businesses struggling with principal repayment due to temporary cash-flow difficulties.
Qualifying firms may extend their principal repayment grace period by an additional year. No minimum principal repayment condition will be imposed during the extension, and no additional interest rate premium will be charged.
Concerns have emerged that firms which weathered the immediate liquidity crisis after the Tmon-WeMakePrice incident through emergency stabilization loans could face renewed financial pressure as repayment deadlines arrive. The measure is intended to ease the burden on affected firms of having to raise additional funds to service existing loans and to give them more time to restore normal operations.
Applications for the special maturity extension will be accepted from Wednesday through Feb. 26, 2027. Details are available on the Korea SMEs and Startups Agency website. Consultations are also available through regional Korea SMEs and Startups Agency offices and branches or through the integrated SME call center.
"We expect this measure to help reduce the temporary liquidity burden on small and medium-sized enterprises affected by the Tmon-WeMakePrice crisis and support their return to normal operations," said Shim Jae-yun, director general for global growth policy at the ministry.
boo@heraldcorp.com
