Banks Provide 21 Trillion KRW Financial Support to Overcome COVID-19 Crisis

[Asia Economy Reporter Kim Min-young] It has been revealed that the banking sector has provided financial support amounting to 21 trillion won over the past two months to prevent the contraction of the real economy due to the novel coronavirus infection (COVID-19) and to stabilize the financial market.

According to the Korea Federation of Banks on the 12th, the banking sector has carried out approximately 21 trillion won in new loans, maturity extensions, and interest rate reductions over two months from February 7 to the 9th, targeting small and medium-sized enterprises and small business owners.

Additionally, the banking sector has actively implemented the government-announced ‘Interest Subsidy Program for Micro and Small Business Owners’ starting from the 1st, providing 404.8 billion won in support by the 9th.

The Korea Federation of Banks stated that the banking sector is doing its utmost to prevent and contain COVID-19 by not only donating funds and supplies but also offering training centers as residential treatment centers.

Furthermore, on the 6th, the financial labor-management-government tripartite adopted a joint declaration expressing their united effort to overcome the COVID-19 crisis and decided to expand support for small and medium-sized enterprises and small business owners facing difficulties.

The joint declaration included provisions such as supplying ultra-low interest funds (annual 1.5%), temporarily suspending and easing management evaluations, reducing rent, and participating in blood donation campaigns.

Kim Tae-young, chairman of the Korea Federation of Banks, stated, “The banking sector will continue to make every effort to ensure that financial support tailored to the situation of each company and each small business owner is provided in a timely manner.”

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