Eun Seong-su Urges Local Governments to Actively Cooperate with Small Business Owners' 'COVID Loans'

Eun Sung-soo, Chairman of the Financial Services Commission, visited the IBK Industrial Bank branch in Gongdeok-dong, Seoul, on the 17th to check the status of financial support measures 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, on the 18th urged active cooperation from local governments managing and supervising regional credit guarantee foundations regarding delays in the screening of guaranteed loans for small business owners affected by the spread of the novel coronavirus infection (COVID-19).

Chairman Eun visited branches of major commercial banks in Seoul, including KB Kookmin, IBK Industrial Bank, Woori, Hana, and Shinhan, the day before to check the status of financial support measures in response to COVID-19.

The banking sector evaluates that demand is heavily concentrated on policy funds with relatively lower interest rates compared to banks' own loan products.

The Financial Services Commission stated, "Applications and submissions at counters have become smoother, but screening still takes considerable time," adding, "We expect the situation to gradually improve through expanded outsourcing of tasks between regional credit guarantee foundations and banks."

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