The South Korean government will extend minimum 420 billion won ($355 million) in emergency funding for transportation, tourism and restaurant businesses hit hard by the spread of new coronavirus (COVID-19) that more or less suspended cross-border and outside activities.

“The government will offer an emergency loan of up to 300 billion won for low-cost carriers (LLCs),” said Hong Nam-ki, deputy prime minister for economy, in an economy-related cabinet meeting on Monday.

Airliners who have been forced to ground jets and cut back services will be exempted from the fees of using airport facilities for three months, he said. The government also will back guarantees for leases for aircrafts.

Shippers will receive 60 billion won in emergency loans and also be exempted from using the port and terminal fees.

Staffing will be subsidized so that no layoffs take place during the hard times. The government will defer inspection on new vessels if deliveries are delayed due to operation suspension at Chinese dockyards.

Tourism agencies facing chain insolvencies will be able to take out 50 billion in unsecured and cheap loan rate at 1 percent.

The cap for regular loans will be raised to 3 billion won and rollover can be possible for a year, the government said.

Special loans for eatery business will be raised from current ceiling of 10 billion won with lending rate lowered by 0.5 percentage point.

By Lee Ha-yeon

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]