Seoul mobilizes massive financial aid for crisis-hit firms

The chief of the country’s financial regulator said that banks and state-run lenders will provide a set of financial support packages to companies affected by the Middle East crisis in order to ease financial burdens and potential liquidity shortages.

In a meeting with heads of steelmakers and related industry firms, Lee Eog-weon, chairman of the Financial Services Commission (FSC), said policy lenders are set to provide a total of 25.6 trillion won (US$17.3 billion) in loans to companies facing difficulties in the wake of the crisis, Yonhap reports.

Banks and other financial institutions have also drawn up additional support measures totaling more than 53 trillion won, according to Lee.

“We are taking timely measures to help crisis-hit companies overcome liquidity shortages and other troubles,” Lee said, adding that the support measures may be further expanded depending on the situation.

Regarding the steelmaking sector, the financial authorities plan to support business restructuring and improve financial stability through a 1 trillion-won fund aimed at facilitating industry overhaul.

By Vafa Guliyeva