"Suspension of Guarantee Claims for SMEs Affected by Heavy Rain"... KOTEC Supports Companies in Special Disaster Zones

[Financial News] Korea Technology Finance Corporation (KOTEC) announced on the 14th that it will implement the 'Special Accident Measures for SMEs in Special Disaster Areas Damaged by Heavy Rain' to support small and medium-sized enterprises (SMEs) affected by the recent heavy rains.
The applicable targets are small and medium-sized enterprises (SMEs) with business sites located in areas declared as special disaster zones by the Ministry of the Interior and Safety (MOIS) due to heavy rain damage, such as Andong-si (Iljik-myeon, Namseon-myeon, Imha-myeon) and Uiseong County (Danchon-myeon) in North Gyeongsang Province, and Geoje and Tongyeong-si in South Gyeongsang Province, for which damage has been confirmed through the ‘Certificate of Confirmation of Disaster-Affected SME.’
For companies eligible for special provisions, the processing of guarantee claims is suspended for a certain period even if reasons such as overdue principal and interest payments, infringement of rights including seizure, provisional seizure, or injunction of business premises, registration of default and public information by Korea Credit Information Services, or deterioration of the representative's credit occur. Claim preservation measures, such as provisional seizure and injunction executed by KOTEC, are also suspended, allowing affected companies to focus on business normalization.
However, if it is determined that normalization is objectively difficult, such as when a notice of guarantee default is received from a creditor bank or when auction or public sale procedures for the business premises are underway, it will be excluded from the application of the special provisions.
"I hope this measure will help small and medium-sized enterprises (SMEs) struggling due to the heavy rainfall to quickly recover from the damage and normalize their operations," said Kwon Hyung-taek, chairman of Korea Technology Finance Corporation (KOTEC). "We will continue to closely monitor the damage situation and spare no support to help affected companies restore their business foundations."

[email protected] Lee Ju-mi Reporter