Top 5 Commercial Banks Fully Support COVID-19 Affected Companies... Eun Seong-su Urges CEOs to Take the Lead

5 Major Commercial Banks Provide at Least 2.75 Trillion Won in Loans and Support
Eun Seong-su Emphasizes "Proper Fund Supply Needed" at Meeting

[Asia Economy Reporter Kim Hyo-jin] Amid the growing business and financial difficulties faced by small and medium-sized enterprises (SMEs) and small business owners due to the spread of the novel coronavirus infection (COVID-19), major commercial banks are launching large-scale financial support measures. Financial authorities plan to implement exemption measures so that frontline staff can actively execute loans and other support, and will encourage smooth assistance through on-site inspections.

According to the banking sector on the 2nd, the five major commercial banks?KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup?have set a financial support plan of at least 2.75 trillion KRW in loans and other assistance for SMEs and small business owners affected by COVID-19. KB Kookmin Bank plans to provide credit worth 850 billion KRW. It will newly support loans totaling 400 billion KRW for companies affected by COVID-19. For companies requiring emergency working capital, new loans will be provided up to 500 million KRW within the scale of the damage.

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. It will also reduce overdue interest for small business owners and SMEs whose business premises were closed, their employees, individuals diagnosed with COVID-19, and their immediate family members living together.

Hana Bank will newly provide management stabilization funds up to 400 billion KRW, with a maximum of 500 million KRW per company. Woori Bank is also supporting management stabilization funds worth 400 billion KRW, mainly for small business owners in the food, lodging, and tourism industries, and will defer loan maturities for small business owners facing temporary liquidity shortages due to deteriorating business performance until the situation stabilizes. NH Nonghyup Bank will provide emergency financial support worth 600 billion KRW. It plans to prioritize 50 billion KRW in funding for small-scale tourism operators severely affected by COVID-19.

The Financial Services Commission has exempted staff from liability for loan execution related to COVID-19 support if there is no intentional or gross negligence, to prevent frontline financial company employees from being reluctant to provide support due to concerns about future defaults. Starting today, the Financial Services Commission will operate a 'Joint On-site Support Team' with Financial Supervisory Service officials to inspect whether support is being smoothly provided at frontline counters.

In this regard, Financial Services Commission Chairman Eun Sung-soo held a breakfast meeting at the Bankers Club of the Korea Federation of Banks in Jung-gu, Seoul, with KB Financial Group Chairman Yoon Jong-kyu, Shinhan Financial Group Chairman Cho Yong-byoung, Hana Financial Group Chairman Kim Jung-tae, Woori Financial Group Chairman Sohn Tae-seung, and NH Nonghyup Financial Group Chairman Kim Kwang-soo, urging them to "take the lead as CEOs to ensure that funds are properly supplied to affected companies."

Chairman Eun also said, "Please actively promote related information so that affected companies do not miss out on support programs due to lack of awareness," and added, "It is necessary to thoroughly conduct internal training and guidance so that frontline staff can understand the difficult situations of visitors and phone inquiries and respond and explain as kindly and in detail as possible."

SMEs and small business owners struggling due to COVID-19 can visit bank branches, present evidence of business and financial damages such as decreased sales since the outbreak, and receive support after undergoing internal review procedures.

Meanwhile, according to the Financial Services Commission, under the government's financial support policy, 1.1317 trillion KRW in funds was newly supplied to SMEs and small business owners affected by COVID-19 through policy financial institutions such as KDB Industrial Bank, IBK Industrial Bank, and Korea Credit Guarantee Fund during 14 business days from the 7th to the 26th of last month.

Eun Sung-soo, Chairman of the Financial Services Commission, is holding a meeting with the presidents of the five major commercial banks on the morning of the 2nd at the Bankers Club of the Korea Federation of Banks in Jung-gu, Seoul. From the center of the back row clockwise: Chairman Eun, Kim Kwang-soo, President of NH Nonghyup Financial Group; Sohn Tae-seung, President of Woori Financial Group; Cho Yong-byoung, President of Shinhan Financial Group; Kim Tae-hyun, Secretary General of the Financial Services Commission; Yoon Jong-kyu, President of KB Financial Group; Kim Jung-tae, President of Hana Financial Group. (Provided by FSC)

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