Banks Fully Commit to Financial Support for SMEs and Small Businesses Affected by COVID-19

Jagalchi Market Closes for the First Time in 75 Years = On the morning of the 25th, a disinfection company official from the Jagalchi Fishery Cooperative is conducting preventive disinfection at Jagalchi Market in Jung-gu, Busan. The Busan Jagalchi Fishery Cooperative decided to close Jagalchi Market until the 3rd of next month to prevent the spread of COVID-19. (Source=Yonhap News)

[Asia Economy Reporter Kim Hyo-jin] As the spread of the novel coronavirus infection (COVID-19) has increased business and financial difficulties for small and medium-sized enterprises (SMEs) and small business owners, major banks are providing continuous financial support.

According to the banking sector on the 29th, KB Kookmin Bank recently decided to supply loans worth 850 billion KRW to SMEs and small business owners affected by COVID-19.

KB Kookmin Bank will first provide new loans worth 400 billion KRW to companies affected by COVID-19. For companies needing urgent working capital, new loans will be provided up to a limit of 500 million KRW within the damage scale, along with preferential interest rate benefits of up to 1.0 percentage point.

KB Kookmin Bank will make a special contribution of 30 billion KRW to regional credit guarantee foundations and the Korea Credit Guarantee Fund, and support loans worth 450 billion KRW. Preferential interest rates will be offered based on transaction performance.

Shinhan Bank will increase the new funding support limit for small business owners and SMEs directly or indirectly affected by COVID-19 from the existing 100 billion KRW to 500 billion KRW.

Additionally, Shinhan Bank will reduce overdue interest for small business owners, SMEs, their employees, individuals diagnosed with COVID-19, and their immediate family members living together who suffered losses due to business closures. They also plan to actively implement installment repayment deferrals for policy fund loans in consultation with the relevant institutions. The terms of interest rate benefits, installment repayment deferrals, and deadline extensions will remain the same as before.

Hana Bank plans to actively implement installment repayment deferrals for policy fund loans in consultation with the relevant institutions, especially for the Daegu and Gyeongbuk regions severely affected by COVID-19. The terms of interest rate benefits, installment repayment deferrals, and deadline extensions will remain the same as before.

Furthermore, Hana Bank will deliver 2,020 "Happiness Boxes" containing masks, hand sanitizers, disinfectants, and daily necessities to quarantine individuals and vulnerable groups in the Daegu and Gyeongbuk regions through relief organizations. Financial counseling centers to support affected companies will also be operated at major branch locations. Counseling centers will be immediately established and operated at three locations: the Seoul Euljiro headquarters, Myeongdong building, and Sejong City, with plans to expand nationwide focusing on major regional branches.

Woori Bank is providing 400 billion KRW in management stabilization funds to small business owners engaged in food, lodging, and tourism industries, and will defer loan maturities for small business owners experiencing temporary liquidity shortages due to deteriorated business performance until the situation stabilizes.

Woori Financial Group has also elevated its COVID-19 response task force (TF) to the group level and decided to mobilize the capabilities of all group companies to provide financial support to customers. Accordingly, Woori Card will defer card payment claims for customers affected by COVID-19 for up to six months. For customers using small and medium-sized merchants, interest-free installments for 2 to 3 months will be supported until the end of next month, and interest rates on card loans and other card financing will be reduced with repayment deferrals.

NH Nonghyup Bank will provide 600 billion KRW in emergency financial support to SMEs and small business owners. NH Nonghyup Bank will prioritize providing 50 billion KRW to small-scale tourism operators severely affected by COVID-19. It will also provide 200 billion KRW in financial support to affected SMEs and small business owners using 'Small Business Policy Fund Management Stabilization Fund' and 'COVID-19 Affected Company Special Guarantee.'

Additionally, through special contributions to regional credit guarantee foundations, it will support guarantee-backed loans worth 350 billion KRW to SMEs and small-scale small business owners.

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