The government has again pledged efforts to help competitive businesses avoid closures due to a temporary lack of liquidity amid the COVID-19 pandemic.

First Vice Finance Minister Kim Yong-beom made the vow on Friday during a meeting, saying the government is mulling various policy measures to help key industries overcome the latest hardship resulting from the novel coronavirus.  

Kim said they are currently keeping a close eye on bonds that are set to mature and the interest rate spread in the short-term capital market and corporate bonds market.  

He cited efforts undertaken by the government to provide liquidity to businesses through the Bank of Korea and securities companies, and to purchase commercial paper and short-term corporate bonds via the Korea Development Bank and the Industrial Bank of Korea. Kim also said the government has begun accepting applications for primary collateralized bond obligations(P-CBO) to help businesses smoothly procure funds.  

The vice minister added the government plans to provide foreign currency liquidity in a timely fashion by actively making use of the South Korea-U.S. currency swap deal and the nation’s foreign exchange reserves.