Banks Provide Emergency Financial Support to Companies Affected by Wuhan Pneumonia (Comprehensive)

On the morning of the 31st, quarantine officials at Seoul Gimpo International Airport completed the quarantine of Korean residents returning by flight from Wuhan, Hubei Province, China, where the novel coronavirus infection (Wuhan pneumonia) occurred, and are leaving the airport. Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Kim Min-young] Banks have stepped up financial support for companies affected by the spread of the novel coronavirus infection (Wuhan pneumonia).

Shinhan Bank announced on the 31st that it will provide financial support to small and medium-sized enterprises (SMEs) affected by the novel coronavirus.

Due to the spread of the novel coronavirus, demand for overseas travel has significantly decreased, and the number of Chinese tourists entering the country has also declined, causing companies in the travel, lodging, and restaurant industries to suffer revenue losses.

Shinhan Bank will provide new loans totaling 100 billion KRW, up to 500 million KRW per company, to SME customers in these industries who are experiencing temporary difficulties in fund management. Considering the scale of the damage, the total support limit will be increased if necessary. In addition, for existing loans of these companies, repayment schedules will be deferred when installment repayment deadlines arrive, and interest rates will be reduced by up to 1% for new and extended credit.

On the same day, KEB Hana Bank also announced that it will provide financial support worth 300 billion KRW to companies affected by the novel coronavirus.

Emergency management stabilization funds of up to 500 million KRW per company will be newly provided to corporate customers such as SMEs and individual business owners engaged in travel, lodging, and restaurant businesses.

Furthermore, for SMEs in these industries, when existing loan maturities arrive, loan maturity extensions of up to one year without principal repayment will be supported, and installment repayments can be deferred for up to six months. Additionally, interest rate reductions of up to 1.3% will be provided.

Regional banks such as Gyeongnam Bank and Busan Bank have also prepared similar support measures, and other banks are reportedly preparing related support plans.

This content was produced with the assistance of AI translation services.