SEOUL, KOREA - The government will raise the size of support to be given to small enterprises and travel, transportation, and lodging operators that have been hit with a sudden fall in consumption following the April 16 ferry sinking incident. The Ministry of Strategy & Finance held an emergency meeting on May 11 and decided to increase the low-cost lending volume to 180 billion won from the previous 75 billion won.

 

According to the plan, the lending limit of the tourism promotion fund would be increased to 50 billion won from 15 billion won announced earlier, with the interest rate lowered further to 2 percent from 2.25 percent.

 

The special loan program given to small manufacturers and merchants directly affected by the incident will also be expanded to 100 billion won from the current 30 billion won, with the interest rate cut to 3 percent from the current 3.20 percent. More than 10 percent of the 100-billion-won support package will go to areas including Ansan (the city from which more than 200 students and teachers were killed or missing) and Jindo (the island in the southwest where the accident occurred).

 

The ministry also said it would disburse the funds during the months of May and June to business areas with high spillover effects such as social overhead capital, job creation projects, and investment in low-income neighborhoods.