Financial Services Commission operates 'COVID-19' emergency response team "Discussing partial exemption of guarantee on-site inspections"

Eun Sung-soo, Chairman of the Financial Services Commission, is holding a current issue inspection meeting related to the COVID-19 emergency response system at the Financial Services Commission in the Government Seoul Office Building on the 4th.

[Asia Economy Reporter Kangwook Cho] Financial authorities are operating an emergency response organization composed of the Financial Support Team, Financial Infrastructure Team, and Financial Market Team to accelerate financial support amid the impact of the novel coronavirus disease (COVID-19).

On the 5th, the Financial Services Commission announced that it expanded the financial situation review meeting related to COVID-19 into an emergency response organization starting from the 4th and will hold daily emergency response meetings to monitor the impact on the financial sector and the response status.

The Financial Support Team will be responsible for checking support performance and resolving difficulties and issues. The Financial Infrastructure Team will inspect BCP (Business Continuity Plan) such as alternative facilities by infrastructure institutions and dispersed operation of personnel, and establish an emergency response system.

The Financial Market Team will monitor market trends such as stocks, bonds, and foreign exchange and prepare a contingency plan. They plan to monitor market trends in stocks, bonds, and foreign exchange and take response measures such as restricting short selling if the situation worsens. Measures such as executing the stock market stabilization fund or expanding pension fund investments are also included in the emergency plan (contingency plan).

The Financial Services Commission recognizes that multi-use facilities and domestic demand industries are experiencing severe business difficulties due to the current sharp decline in domestic demand and plans to review whether to expand financial support measures such as loans, debt restructuring, and repayment deferrals for small business owners and self-employed individuals.

Regarding the issue that financial support programs are not being promptly executed on the ground, the Financial Services Commission is consulting with related agencies to ensure that guarantee screening for guaranteed loans, which have the highest demand, can be conducted quickly and supported promptly. Measures under consideration include outsourcing customer-facing guarantee screening tasks to banks or partially exempting on-site inspections.

Guidelines for safely holding regular general meetings of shareholders will also be prepared and distributed. The Listed Companies Association, KOSDAQ Association, and KONEX Association will distribute the 'Guidelines for Safe Holding of Regular General Meetings of Shareholders' on this day with support from the Financial Services Commission and the Ministry of Justice. The guidelines include actively introducing non-face-to-face voting methods such as proxy voting and electronic voting, recommending mask-wearing when entering the meeting venue, and allowing shareholders with fever to attend and exercise voting rights in separate locations.

The Financial Services Commission will actively review companies that have applied for exemption from penalties related to delayed submission of business reports. As of the 4th, seven companies have applied.

The Financial Services Commission stated, "On the 4th, Chairman Eun Sung-soo visited frontline branches of the Korea Development Bank and the Korea Credit Guarantee Fund to inspect the financial support situation for COVID-19 and listen to the difficulties of small business owners and self-employed individuals on site," adding, "We plan to continue regularly monitoring the situation on the ground."

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