Eun Seong-su, Financial Services Commission Chairman, "Local Government Cooperation Needed for Swift Guaranteed Loans"

Eun Sung-soo, Chairman of the Financial Services Commission, visited Kookmin Bank on the 17th to check the status of financial support in response to COVID-19. (Photo by Financial Services Commission)

[Asia Economy Reporter Kim Hyo-jin] Eun Sung-soo, Chairman of the Financial Services Commission, emphasized the need for cooperation from local governments that manage and supervise regional credit guarantee foundations to ensure that guaranteed loans for small business owners can be processed quickly.

On the 18th, at a meeting of the ruling party, government, and Blue House regarding the response to the novel coronavirus infection (COVID-19), Chairman Eun stated, "The screening for guaranteed loans for small business owners is being delayed, and active cooperation from local governments that manage and supervise each regional credit guarantee foundation is necessary."

Among loans for small and medium-sized enterprises and small business owners affected by COVID-19, guaranteed loans through regional credit guarantee foundations have relatively lower interest rates compared to bank loans, resulting in high demand. Due to the overload in the screening process at regional credit guarantee foundations, loan processing is being delayed by 2 to 3 months.

The financial authorities are trying to speed up the processing of guarantee applications through delegated tasks between regional credit guarantee foundations and banks, but the problem remains unresolved.

Meanwhile, Chairman Eun personally visited five bank branches in Seoul the day before to check on the financial support situation in response to COVID-19.

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