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South Korea to provide $3 billion for auto suppliers

Staff Writer |
South Korea unveiled a policy package to support its car parts makers industry that includes providing financial support worth over 3.5 trillion won ($3.10 billion) and encouraging the use of electric cars.

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As part of its efforts to provide liquidity, South Korea will launch a new credit guarantee program for bonds worth 1 trillion won ($884.96 million) issued by the suppliers, using contributions from the government and car makers, the industry ministry said in a statement on Tuesday.

And the government plans to extend the maturity of loans worth about $1 billion by one year made to local suppliers of U.S. automaker General Motors’ (GM.N) South Korean unit, it added.

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