Ministry of Culture, Sports and Tourism, “Strengthening Financial Support for Tourism Industry in the New Year”
Tourism company loan repayment is deferred for one year and interest is also reduced
The government suspends the repayment of loans for tourism companies and reduces interest rates. In addition, the general loan for the new year will be intensively implemented in the first half of the year, and the special loan from the Ministry of Credit Guarantee will be doubled and supported.
The Ministry of Culture, Sports and Tourism recently announced that it would strengthen financial support in this way to help the tourism industry, such as the travel and lodging industries, who are suffering from financial difficulties due to the prolonged Corona 19, will recover early next year. First, following 2020 and 2021, repayment of loans will be deferred for one year for all tourism companies that are due to repay the loan next year. It is worth 360.7 billion won in total. Interest on tourism development fund loans will also be reduced for the first time. The exemption is applicable to all tourism companies that have been supported by the tourism fund loan. From January 2022, the current 1~2.25% interest rate will be reduced by 0.5%p, and when interest rates rise, a maximum of 0.5%p will be additionally reduced and reduced by up to 1%p. Through this, the industry can lower the interest burden by more than 17.9 billion won, and the average annual average of each company is 2.98 million won, the ministry explained.
The new year’s general loans will also be allocated in the first half of the year to support the early recovery of the tourism industry. The general loan size for next year will reach KRW 549 billion, of which 70%, or KRW 380 billion, will be allocated in the first half of the year, and the operating finance loan will be strengthened to 60%.
For small and medium-sized tourism companies with weak collateral, the Ministry of Credit Guarantee’s special loan will also be expanded to 100 billion won, double this year’s level. It provides various benefits such as a 1% loan interest rate and a one-year extension of the grace period, and the limit of support is also raised from 150 million won to 200 million won.
Meanwhile, the Ministry of Culture, Sports and Tourism announced that it has provided emergency financing for the tourism industry from 2020 to the present (as of December 10) with a total of 1.429 trillion won (381.3 billion won in deferred repayment, 933.5 billion won in general loans, 128.1 billion won in special loans). Among them, in the case of special loans from the Ministry of Credit Guarantee, the use of travel agencies stood out. Travel companies accounted for 79.1% (2,105 companies) of the total number of users (2,662 companies), and the amount of application was 74.9% (about KRW 95.9 billion).
By Kim Seon-joo, staff reporter [email protected]
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