FSC Head Says Industry Stabilization Fund Will Not Be Preferentially Provided to Certain Firms

Financial Services Commission Chairman Eun Sung-soo

Financial Services Commission Chairman Eun Sung-soo said on May 28 that the government’s 40 trillion won key industry stabilization fund launched that day is no preferential treatment for certain companies and non-beneficiaries such as SsangYong Motor Company and low-cost carriers can be given financial assistance from the government by other methods.

“The key industry stabilization fund is to support aviation and shipping and other sectors can be given assistance by other means,” he remarked, adding, “The government is planning to provide 135 trillion won for companies suffering from COVID-19, the key industry stabilization fund is one part of the plan, and SsangYong Motor Company and the like can benefit from the bond market stabilization fund, primary collateralized bond obligations, and so on once it becomes clear that their requests are based on difficulties caused by the pandemic.”

He also explained that the government support is covering low-cost carriers as well and creditor banks are to select specific methods. He also mentioned additional assistance for Doosan Heavy Industries & Construction would be possible in the near future.

The chairman highlighted post-assistance restructuring of beneficiaries, too. “Seven committee members are to participate in the operation of the fund and they include former United Asset Management Company chief Lee Sung-kyu,” he said, adding, “I recommended him because he is one of top corporate restructuring experts.”