Five Major Commercial Banks "Full Effort on COVID-19 Financial Support"... Eun Seong-su Urges "CEOs to Step Up" (Summary)

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 bank employees 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 supply loans worth 850 billion KRW. It will provide new loans totaling 400 billion KRW to companies affected by COVID-19. For companies requiring urgent working capital, new loans will be offered up to 500 million KRW within the scale of the damage.

Shinhan Bank will increase the limit for new fund support 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 have been 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, focusing on 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 deteriorated business performance until the situation stabilizes. NH Nonghyup Bank will provide emergency financial support totaling 600 billion KRW. It plans to prioritize 50 billion KRW in funds for small-scale tourism operators severely affected by COVID-19.

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

In this regard, on the morning of the same day, Eun Sung-soo, Chairman of the Financial Services Commission, 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 and others."

Yoon Jong-kyu, Chairman of KB Financial, responded, "We will contribute to the nationwide effort," while Cho Yong-byoung, Chairman of Shinhan Financial, said, "We will seek practical measures to help affected companies and customers." Kim Jung-tae, Chairman of Hana Financial, stated, "We will take the lead in supporting affected individuals, companies, and regions."

Sohn Tae-seung, Chairman of Woori Financial, promised, "We will do our best to provide support without blind spots," and Kim Kwang-soo, Chairman of NH Nonghyup Financial, announced, "We will prioritize community-based financial support for farmers and small business owners."

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

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 Financial Services Commission)

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