President Moon Jae-in on March 24 speaks to the second meeting of an Emergency Economic Council at Cheong Wa Dae. (Yonhap News)

By Lee Hana

President Moon Jae-in on March 24 announced that his administration will double the amount of an emergency financial aid package for businesses affected by the coronavirus pandemic to KRW 100 trillion.

In the second session of an Emergency Economic Council at Cheong Wa Dae, he pledged to take every measure to prevent bankruptcies due to the impact of COVID-19.

To this end, the president said "the government has decided to increase the emergency financial aid package to KRW 100 trillion from the KRW 50 trillion agreed to in the council's inaugural meeting last week."

"The latest measure will add another KRW 22.5 trillion to last week's aid plan meant for small and medium companies, small business owners and the self-employed. The updated measure is a large-scale aid package designed to help small and medium companies and major companies stay in business, as well as stabilize the stock market amid an impending credit crunch," he added. 

Under the plan, a fund worth KRW 29.1 trillion will assist small and medium companies and major corporations through financial relief. Loan guarantees will be expanded to KRW 7.9 trillion and assistance for loans will be increased by KRW 21.2 trillion. 

A fund for bond market stabilization worth KRW 20 trillion will help businesses suffering from a cash crunch. An additional KRW 17.8 trillion will assist businesses dealing with a temporary lack of liquidity.

Another fund for stabilizing the securities market worth KRW 10.7 trillion will serve as a buffer against capital outflows, with an amount 20 times that of the fund created during the 2008 global financial crisis. 

The president said, "The new measure is meant to protect our businesses. We will implement every measure to safeguard our business sector and protect the job market."

hlee10@korea.kr