The South Korean government said Tuesday it will provide an emergency relief fund to small and medium-sized firms in the country exposed to financial risks from a series of retaliatory actions by China in protest of Seoul's installment of a high-tech US missile system.
The Ministry of Trade, Indtry and Energy will offer a loan of up to 1 billion won ($866,000) for as long as five years to smaller companies with biness ties in China that may face financial problems due to Beijing's intensifying trade restrictions on Korean firms.
Lotte Group is suffering from China's economic pressure against Seoul due to the rising controversy over the THAAD installment.(Yonhap)
China has ratcheted up hostile measures against Seoul and Korean companies doing business there since South Korea agreed in August last year to install an advanced US missile defense battery, known as the Terminal High Altitude Area Defense on its soil.
Beijing has strongly objected to the decision, saying the high-tech radar will be ed to penetrate its own military.
South Korean retail giant Lotte Group is suffering a large blow in China with almost two dozen retail outlets forced to shut down temporarily as of Monday as Chinese authorities cited fire safety reasons.
The largest operator of duty-free shops in Korea is also feared to lose a bulk of Chinese tourists that make up half of its duty-free revenue after Beijing told travel agencies in the country last week to stop selling tours to Korea.
The special emergency loan is designed to help SMEs cope with the worsening situation as many of them have biness footings in China that are now at stake, the ministry said in a statement.
The ministry added that it has set up a taskforce consisted of government agencies and indtry officials to discs ways to minimize the difficulties that the companies are facing and will face in the future. (Yonhap)
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