Choi Mo (34), who runs a small business, experienced being rejected before even applying for a loan from the Korea Credit Guarantee Fund last November. As a victim of the TMON and WEMAKEPRICE incidents, Choi wanted to receive a loan for damaged sellers supported by the fund, but the fund conveyed the message, "It seems that the loan will be difficult to obtain," without ever meeting Choi. Choi, who was trying to recover business damages with the loan, reluctantly opened an overdraft account and reduced the scale of the business. He sighed, saying, "I had to let go of 2 out of 4 employees due to a lack of funds for the business."
Results of the support measures for sellers affected by TMON and WEMAKEPRICE, launched by financial authorities through the Korea Credit Guarantee Fund and the Industrial Bank of Korea, have been poor. Out of a total of 50,000 affected sellers, only about 300 benefited from the policy. Among sellers, there has been a preference for support measures from other government agencies, accompanied by assessments that "the thresholds for loans from the fund were particularly high."
According to the Korea Credit Guarantee Fund on the 3rd, a total of 315 sellers had received special guarantee loans due to delayed settlements from TMON and WEMAKEPRICE from the Korea Credit Guarantee Fund and the Industrial Bank of Korea until December 31 last year. Considering that the total number of sellers who did not receive sales funds from TMON and WEMAKEPRICE was 48,124, only a very small number benefited from the policy. The disbursed loan amount also recorded 103.3 billion won, which is one-third of the target amount of 300 billion won.
The special guarantee loans from the Korea Credit Guarantee Fund had a low number of applications from the start. Last year, the number of loan applications received by the fund was 343. Regarding the low number of applications, the fund explained, "It seems that 90% of the affected companies have amounts of damage under 10 million won and have no intention of using the loan." Additionally, it noted, "The demand for funds has been dispersed to loans from the Small Enterprise and Market Promotion Agency and the Small and Medium Business Corporation, which have lower interest rates."
However, sellers have a different stance. Sellers stated, "Before applying for a loan, we go through consultations with fund staff, and there were many cases of rejection in this process." They argue that many cases of rejection before formally applying for a loan are not reflected in the statistics. According to sellers, about 1 out of 2 sellers who consulted with the fund reported that they were rejected before applying for the loan.
Sellers who faced rejection from the fund are looking for policy loan products from the Small Enterprise and Market Promotion Agency and the Small and Medium Business Corporation as alternatives. Last year, the disbursed amount from the Small Enterprise and Market Promotion Agency and the Small and Medium Business Corporation for emergency management stabilization funding for TMON and WEMAKEPRICE affected companies was 146.9 billion won. Initially, a smaller budget of 270 billion won was allocated than that of the fund, but sellers' demand has shifted more toward the Small Enterprise and Market Promotion Agency and the Small and Medium Business Corporation.
Meanwhile, the fund announced that it would operate special guarantee loans this year under the same conditions as last year. A representative from the fund noted, "We plan to continue supporting affected sellers' loan applications in the future," adding, "We will actively participate if there are new government support measures."
☞ What is the special guarantee loan from the Korea Credit Guarantee Fund and the Industrial Bank of Korea?
This is a policy finance special guarantee loan product created by the Financial Services Commission in August last year to support companies affected by TMON and WEMAKEPRICE. After assessment by the fund, this product allows the Industrial Bank of Korea to grant loans with minimum annual interest rates of 3.9% to 4.5%, which are lower than the business loans offered by banks. The fund's efforts aim to assist affected companies in securing funding and prevent a decline in business liquidity.