Korea

The long economic slowdown has increased sales of receivables insurance for small- and medium-sized businesses (SMEs).

Despite resistance from small businesses, the government has decided to repeal a controversial protective measure for small- and medium-sized enterprises (SMEs) from as early as next year as part of restructuring efforts.

The government plans to enhance credit risk monitoring of companies with outstanding loans of 5 billion won (US$4.27 million) or less, financial sources said.

Small- and medium-sized enterprises (SMEs) have been found, on average, to owe debts to fewer than four financial institutions, the Korea Federation of Small and Medium Business said.

The Financial Supervisory Commission (FSC) has this week pressed financial institutions not to aggressively retrieve loans extended to small- and medium-sized enterprises (SME) as part of an effort to prevent a potential cash flow crisis within th

The Korean government yesterday unveiled a set of measures aimed at bolstering the competitiveness of small- and midsize enterprises (SMEs) that have been hit hard by weak domestic demand.

Despite aggressive corporate restructuring efforts since the financial crisis, nearly three in 10 domestic firms were still unable to pay interest in 2003, the Korea Development Institute (KDI) has said this week.

The number of cases of suspected money laundering reported by financial service companies increased sharply this year, the Korea Financial Intelligence Unit said.

Korea's banks and other financial institutions, especially the country's three major loan guarantee agencies, are to participate in a debt workout programme for small- and medium-sized businesses (SMEs).

Due to growing uncertainties over a recovery of the domestic economy, the loans extended to small- and medium-sized enterprises (SME) could come back to haunt the local banking sector.