Local governments have set out to help local small businesses and export companies to China that are facing difficulties due to spread of the new strain of coronavirus.
As the government has gone into an emergency state while discussing about possible measures to support companies that are affected by the situation, local governments will try to understand situations of their areas and actively support companies in need through financial measures and others.
Seoul-si is concentrating its capabilities in order to minimize amount of damage that the situation may have on small businesses and self-employed businesses.
It has invested $4.19 million (5 billion KRW) of its emergency fund in order to provide $419 million (500 billion KRW) of long-term low interest upbringing fund with 1.5% interest rate. Its decision is based on urgency of the issue when exact extent of damage has not been confirmed.
It is going to match small to medium companies with special credit guarantee and conduct anti epidemic sterilization on the four traditional markets. It is planning to conduct sterilization process while paying close attention to trends of infection and situations of the traditional markets.
Daejeon-si has formed a damage support team along with five local economic groups and four government-funded agencies.
This support team was established to understand exact extent of damage on factories in China and export-related companise. It will receive requests from companies directly and provide personalized support.
Gyeongsangbuk-do Province has established an economic hotline. It will designate person in charge for its headquarters and 23 cities and districts and monitor economic trends. It is planning to expand supporting policies for small to medium companies and special measures for small businesses and quickly carry out relevant budget during the first half.
Daegu-si has also formed a disaster management headquarters with its mayor as the head and an economic special support group under head of its civil safety office. It is working on preparing solutions believing that local companies that operate factories in China are the ones that are heavily affected by the situation.
Gwangju-si and Jeollanam-do Province have established and are operating a support center with Korea International Trade Association for their local companies. The support center is understanding extent of damage and difficulties from companies that are having difficulties with importing and exporting goods from and to China, companies that have closed their branches or factories in China, and companies that had to cancel their exhibitions in China or meetings with Chinese buyers.
They are planning to establish a close cooperative system with agencies that are related to export support and address the extent of damage to the government and they are also trying to understand difficulties that local companies are facing in other countries as well.
Other local governments have also strengthened their monitoring over extent of damage on their local companies and are sharing relevant information and preparing support measures for their local companies.
“We are concerned about management of export companies to China as most of businesses in China have been closed due to spread of the new strain of coronavirus.” said Jung Jae-yong who is the head of Daejeon-si’s Corporate Venture Support Department. “We are going to monitor the situation with our local economic groups and government-funded agencies and minimize damage through personalized support measures.”
Staff Reporter Yang, Seungmin | sm104y@etnews.com