Korea

30% of Korea's SMEs now plan to add to their existing business or convert to a new enterprise altogether, says survey of 400 firms.

Local and foreign commercial financial institutions loaning funds to foreign operators of overseas projects, will be able to receive loan guarantees starting next year.

The Financial Supervisory Service (FSS) have announced that Korean Banks have experienced the lowest ever ratio of bad performing loans. They credit stable management as the key to success.

 

Bank-initiated debt workout programs have helped more Korean SMEs clean up their balance sheets in the second quarter.

 

Korean bank lending rates for SMEs reached the highest level in over five years in June.

The governor of the Bank of Korea is concerned that the increased lending to SMEs is helping fuel the bubble in stock and property markets.

SME's in South Korea are likely to be hit with higher financing charges after the central bank raised interest rates to a six-year high.

 

Hana Bank Korea is expected to begin a micro credit service that will offer small loans to startup entrepreneurs.

The local financial authority will strengthen monitoring for loans to SMEs.

BOK top policymakers decided to cut lending to local SMEs by won1.5 tn (US$1.6bn) from the third quarter 2007.