Banks Expand Support for COVID-19 Damage... Providing Masks and Daily Necessities, Early Budget Execution

[Image source=Yonhap News]

[Asia Economy Reporter Kwon Haeyoung] As the novel coronavirus infection (COVID-19) rapidly spreads, the financial sector has rolled up its sleeves to support those affected. Efforts are being made to assist small business owners and small and medium-sized enterprises (SMEs) through various means, including financial support such as low-interest loans, mask supplies, essential goods support, and rent reductions.

According to the financial sector on the 1st, Woori Financial Group plans to provide essential goods and donations worth approximately 1.1 billion KRW to help prevent the spread of COVID-19.

The group will prioritize support for vulnerable groups in the Daegu and Gyeongbuk regions, where confirmed cases have surged and many difficulties are being faced. First, essential goods kits worth about 300 million KRW will be provided to elderly vulnerable groups who face food insecurity due to the temporary closure of multi-use facilities. The essential goods will be purchased from traditional markets in the Daegu and Gyeongbuk areas to support local small business owners whose sales have sharply declined due to the COVID-19 crisis. Additionally, Woori Bank employees will voluntarily donate part of their salaries to create a fund of 200 million KRW, which will be delivered to 57 child care facilities in Daegu and Gyeongbuk that are struggling due to school delays and prolonged restrictions on outdoor activities caused by infection risks.

IBK Industrial Bank of Korea also plans to provide approximately 64,000 hand sanitizers and disinfectants free of charge to small business owners and SMEs nationwide who are experiencing difficulties due to COVID-19, starting from the 4th. About 9,000 of these will be distributed to the severely affected Daegu and Gyeongbuk regions.

Through the 'Flower Dream' event and early budget execution, efforts will also be made to revitalize domestic consumption. To support flower farmers and florists who are struggling due to the reduction of graduation and entrance ceremonies, flowers and potted plants will be purchased from flower farms and florists and given to customers nationwide through branches from the 9th to the 13th.

The timing for purchasing customer gifts and office supplies used by IBK will also be advanced. The purchase budget, originally scheduled for execution after the second quarter, will be executed early starting in March. Customer gifts will only be purchased from SMEs selling products through small business owners.

Shinhan Bank is accelerating payments for construction and various procurement funds to partner companies and is promoting the use of local gift certificates for expense payments at branches nationwide to revitalize the local economy. Following Shinhan Financial Group’s previous support of 200,000 masks, additional donations of masks and hand sanitizers are being implemented as measures to prevent the spread of COVID-19.

KB Kookmin Bank has temporarily waived fees for internet banking, Star Banking, and automated teller machine (ATM) usage for residents of Daegu and Gyeongbuk, designated as 'special management areas for infectious diseases,' since the 25th. The fee waiver for non-face-to-face channels aims to provide financial convenience and minimize customer damage caused by COVID-19. However, customers using other banks’ ATMs, customers with accounts at other banks, and customers using brand-affiliated ATMs are excluded from this support. Additionally, about 100 million KRW worth of essential goods were purchased from traditional markets in the Daegu and Gyeongbuk regions using local love gift certificates and will be delivered to disadvantaged neighbors such as children’s welfare centers and local children’s centers.

Furthermore, the banking sector is also participating in the government-led 'Good Rent Movement.' IBK will reduce rent by 30% (up to 1 million KRW per month) for three months starting in March for buildings it owns to support small business owners and SMEs. Shinhan Bank will also reduce rent for small business owners and small enterprises located in buildings owned by the bank, similarly reducing 30% of the monthly rent up to 1 million KRW for three months.

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