While the Monetary Policy Committee of the Bank of Korea decided to raise the base interest rate by 0.25%p to 1.25% a year, the level just before the coronavirus, SMEs in the Busan and Ulsan regions raised concerns that they could run into operational limits.
The Busan-Ulsan Regional Headquarters of the Federation of Small and Medium Businesses issued a “commentary from small and medium-sized businesses in Busan and Ulsan on the base rate hike” on the 14th and said, “We are concerned about the Monetary Policy Committee’s decision to raise the base rate.”
The regional headquarters urged the government and financial circles to take follow-up measures to mitigate the shock of interest rate hikes, saying, “Small and medium-sized enterprises are vulnerable to interest rate rises, and a continued interest rate hike can lead to a liquidity crisis.” Reporter Seok Hyeon
