Financial Services Commission "Exercise Special Caution Over Increased Volatility in June Cash Flow"

Son Byung-du, Vice Chairman of the Financial Services Commission, is delivering opening remarks at the "7th Economic Central Disaster and Financial Risk Response Team Meeting" held at the Korea Federation of Banks in Jung-gu, Seoul on the 9th. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Kim Hyo-jin] Sohn Byung-doo, Vice Chairman of the Financial Services Commission, said on the 9th, "In June, along with the corporate month-end settlement fund demand, financial companies may experience increased volatility in cash flow while meeting quarter-end soundness standards, so special caution is required."

Vice Chairman Sohn made these remarks while presiding over the 7th Economic Central Disaster and Safety Countermeasures Headquarters Financial Risk Response Team meeting at the Korea Federation of Banks in Jung-gu, Seoul, on the morning of the same day.

Vice Chairman Sohn emphasized, "We will proactively respond to risk factors in the financial market to prevent anxiety caused by the novel coronavirus disease (COVID-19) from spreading throughout the economy and strengthen the financial sector's support function for the real economy."

The corporate bonds maturing this month amount to approximately 12 trillion won, and commercial papers (CP) and short-term bonds total about 53 trillion won. The Financial Services Commission expects that there will be no significant difficulties in corporate financing as a large portion of these are high credit ratings.

Vice Chairman Sohn stated, "For companies whose business conditions are sound but whose credit ratings have been downgraded due to COVID-19, we will provide support through the Bond Market Stabilization Fund, bond purchases by the Korea Development Bank, and the purchase organization for corporate bonds and CPs including low credit ratings."

The Financial Services Commission announced a financial regulation relaxation plan in April and completed 21 measures, including the temporary easing of the LCR (Liquidity Coverage Ratio) regulation for banks. Vice Chairman Sohn revealed the plan to complete the remaining tasks by July.

Meanwhile, the Financial Services Commission has identified that 13 trillion won was disbursed as the first support program for small business owners related to COVID-19, and 192.7 billion won as the second support program.

Additionally, through expanded financial support for small and medium-sized enterprises and mid-sized companies, 15.1 trillion won was provided, and 7.2 trillion won was supplied to stabilize the corporate bond and short-term money markets.

Overall, as of the 29th of last month, a total of 1,531,000 cases and 124.7 trillion won in financial support related to COVID-19 have been provided across the financial sector.

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