Financial Support for Vulnerable Groups in the Debt Industry Amid COVID-19

Im Seung-bo, President of the Korea Asset-based Finance Association

[Asia Economy Reporter Kim Min-young] The Korea Microfinance Association announced on the 23rd that it will expand financial support for small business owners and self-employed individuals who are struggling due to the spread of the novel coronavirus infection (COVID-19).

First, if the primary debtor dies due to COVID-19, partial or full exemption of loan repayment will be provided. If the primary debtor suffers direct damage from COVID-19, interest payment deferral or suspension of collection will be granted, and the loan maturity will be extended by at least six months.

However, household loans, real estate sales and rental businesses, and entertainment-related industries are excluded from the support.

Twenty companies, including Leadcode, Baro Credit Loan, and Welcome Credit Loan, participated in this support program.

Im Seung-bo, president of the Microfinance Association, said, “As financially vulnerable groups are going through difficult times due to the spread of COVID-19 infection, we hope that the support from the loan industry will be of some help.”

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