Financial Services Commission "Accelerating Start of 40 Trillion Won Draft Fund Support Next Month"

Son Byung-du, Vice Chairman of the Financial Services Commission, is delivering opening remarks at the "5th Economic Central Disaster and Financial Risk Response Team Meeting" held at the Korea Federation of Banks in Jung-gu, Seoul on the 26th. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Kim Hyo-jin] The 40 trillion won-scale Industrial Stability Fund (ISF) will begin full-scale support next month.

Son Byung-du, Vice Chairman of the Financial Services Commission, announced this plan while presiding over the Financial Risk Response Team meeting at the Korea Federation of Banks in Jung-gu, Seoul on the morning of the 26th.

Vice Chairman Son said, "Within this week, we will form the Fund Operation Deliberation Committee centered on private experts and launch the ISF to complete the institutional foundation."

He also stated, "Starting in June, we will accelerate efforts so that support from the Industrial Stability Fund can begin through companies' applications for financial assistance."

Meanwhile, the Financial Services Commission confirmed that a total of 31,442 applications (314.4 billion won) were received over five days until the 22nd at seven banks?KB Kookmin, Shinhan, Hana, Woori, NH Nonghyup, IBK Industrial Bank, and Daegu?during the pre-application period for the second emergency loan targeting small business owners affected by COVID-19, which began on the 18th.

Vice Chairman Son requested the banks, saying, "(The second loan) will inevitably be more cumbersome and complicated than existing loans because banks must conduct both loan and guarantee screenings," and added, "Please make efforts to ensure that loan and guarantee screenings are conducted promptly through internal staff training, etc."

The limit for the second loan is 10 million won per case, and the interest rate is in the 3-4% range annually for medium-credit borrowers.

Meanwhile, the Financial Services Commission announced that since the first COVID-19-related financial sector response measures were announced on February 7, a total of 1,327,000 cases and 107.8 trillion won in funds have been provided to small business owners and SMEs as of the 22nd of this month.

This includes 54.3 trillion won in new loans and guarantees and 50.2 trillion won in maturity extensions for existing loans and guarantees.

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