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South Korea revealed it will be launching a support program so it can extend help to businesses in case they will be affected by the ongoing crisis in Russia and Ukraine. The scheme is primarily to aid local companies with economic problems brought about by the Russian invasion.
South Korea is reportedly putting in ₩2 trillion or around $1.66 billion funding for the program. The money will be disseminated to companies if needed. The plan was divulged by the Korean government’s top financial regulator on Friday, Feb. 25, as per The Korea Herald.
“We will thoroughly review the extent of damages and the financial state of our exporters and importers to prevent any difficulties stemming from the Ukraine crisis,” Koh Seung Beom, South Korea’s financial services commission chairman, said during a joint conference of financial heads. “A financial support program will be launched for the businesses if needed.”
The FSC also confirmed that the program would allocate up to ₩2 trillion for the affected businesses. The financial authorities noted that the effects of the Russia-Ukraine crisis on the local market are limited so far. But then, the economy still needs to prepare for new developments, and uncertainties as the crisis in Ukraine enters a new stage.
Moreover, The Korea Economic Daily further reported that South Korea’s support programs for companies will make up for any damage resulting from Russia’s attacks to invade its neighbor. The country is said to be joining the global movement to stabilize energy markets while looking to purchase more spot cargoes and raise imports from Australia.
From the ₩2 trillion funding, it was said that S. Korea will allot financial support of up to $1.7 billion to exporters as part of the effort in minimizing the impact of the intensifying combat in Ukraine since the country is set to join the economic sanctions against Russia for its attacks.
Finally, the officials will be closely monitoring energy supply and demand and the financial markets so they can immediately implement proper measures and address the possible impact of the crisis. S. Korean President Moon Jae In also ordered his staff to constantly check the situation and take the needed steps to avert stiff effects as the chaos is still expected to hit the country in any way.
