Due to the recent economic recession, the situation of financing for the medium and small enterprises becomes worse, and it is anticipated that the financial predicament of the medium enterprises which have relatively low credit will get worsen because banks avoid making loan for the medium company. Therefore the government makes efforts such as operating 'Fast Track Programme' and issuing Backed Securities, to provide the financial liquidity for the medium companies which are facing the lack of temporary financial liquidity. However it seems that these economic policies do not help them too much. It might be inevitable choice for the government to supply the liquidity to the medium companies given the recent economic slump. However, there is a possibility that it might cause the deterioration of the bank soundness owing to supporting the unstable medium companies, which suggests the financial support strategies of the government for the medium companies presents profound dilemma.
Therefore, the bank avoids lending a loan to prevent the deterioration of the bank soundness. Under this circumstance, the most efficient government policy would be trust guarantee loan through the public trust guarantee institutions. In the future, the government needs to extend supply of the trust guarantee fund and to find the way to facilitate the process of the trust guarantee. First of all, when the government makes a budget, it needs to consider extension of the amount of trust guarantee fund for the medium enterprises by augmenting the contribution of previous and current report. At the same time, complementary measures will be needed to prevent the reckless management of the trust guarantee institutions due to the extension of supplying the trust guarantee fund. Also, in the future the government needs to relieve the financial burden by inducing the contribution from the financial institution or large enterprises.