Banks form equity funds to rescue SMEs
In an effort to rescue small- and medium-sized companies (SMEs) struggling with financial difficulties, banks are forming private equity funds to invest in these firms.
In an effort to rescue small- and medium-sized companies (SMEs) struggling with financial difficulties, banks are forming private equity funds to invest in these firms.
Domestic banks say they are individually evaluating the credit conditions of small- and medium-sized enterprises (SMEs) with outstanding loans from the banks that appear to show signs of trouble.
The number of overdue loans to small- and medium-sized enterprises (SMEs) jumped by nearly 50 per cent in the first four months of the year, due to worsening cash flow problems caused by the prolonged economic slump.
Three out of four firms listed on the Korea Stock Exchange (KSE) had no credit ratings from domestic credit rating agencies at the end of last year and only one out of 20 Kosdaq companies had credit ratings.
Approximately two-thirds of small- and medium-sized enterprises (SMEs) go out of business within five years, the Korea Credit Guarantee Fund said this week.
Banks are slowing down loans to small- and medium-sized enterprises (SMEs) this year.
Despite the sharp rise in the ratio of overdue loans outstanding at small- and medium-sized companies (SMEs) this year, domestic banks lent even more to SMEs last month, according to the Bank of Korea.
The government has announced the appointment of Kim Song-woong as head of the Korea Export Insurance Corporation (KEIC).
The Central Bank of Korea (BOK) on Monday predicted there could be a series of bankruptcies of small companies and individuals and a possible collapse in the property price bubble.
Commerce-Industry-Energy Minister Lee Hee-beom has predicted that exports will more than double to $400 billion in 2010 from $193.8 billion last year, thus making South Korea the world's eighth largest exporting country, compared with 12th last ye