Eun Sung-soo: "Additional Measures for SME Loans...Reigniting 'Innovation Finance'"

Eun Sung-soo, Chairman of the Financial Services Commission

[Asia Economy Reporter Kim Hyo-jin] Eun Sung-soo, Chairman of the Financial Services Commission, stated on the 11th regarding the COVID-19 pandemic, "We will prepare additional measures for small and medium-sized enterprise loans, which are still criticized for insufficient support."

Chairman Eun made these remarks during a press briefing held at the Government Complex Seoul in the afternoon to explain the key tasks for the second half of this year.

He also mentioned, "Since the third supplementary budget is essential to ensure the scheduled financial support is carried out smoothly, we will thoroughly explain the necessity of the supplementary budget to the National Assembly and seek their cooperation."

Furthermore, Chairman Eun expressed his intention to reignite 'innovative finance,' which had somewhat fallen behind in priority due to the implementation of various COVID-19 related support programs.

Accordingly, Chairman Eun believes that the 'Innovative Companies 1000' initiative should be launched in earnest first.

He explained, "Related ministries such as the Ministry of Trade, Industry and Energy and the Ministry of SMEs and Startups are currently conducting procedures to select promising innovative companies that require priority support. By early next month, we plan to select 20 companies for the first round of support, and although it will not be easy, we hope to select around 200 innovative companies within this year."

The Financial Services Commission plans to provide comprehensive support to the selected companies, including financial support such as loans, investments, and guarantees, as well as management strategy consulting and opportunities for investor relations (IR) presentations.

Chairman Eun forecasted, "The medical, bio, and digital industries, which have emerged as our strengths through the COVID-19 experience, will have an opportunity to grow."

He also expressed his intention to activate digital finance in preparation for the 'post-COVID-19' era. In this regard, Chairman Eun proposed ▲revising the identity verification regulatory system ▲strengthening financial security ▲promoting big data utilization.

Accordingly, the Financial Services Commission plans to establish an 'Innovation Plan for Authentication and Identity Verification in the Financial Sector' during the third quarter of this year.

Regarding concerns about increased household debt and potential financial instability due to COVID-19, Chairman Eun said, "We will consider a new management plan that sets annual target ranges over a 2-3 year horizon."

He also expressed the intention to "prepare supplementary measures to address vulnerabilities revealed during crises, such as liquidity risks in the secondary financial sector."

Under the policy direction of 'strengthening inclusive finance,' the Financial Services Commission plans to increase the supply of policy-based financial products for low-income earners, such as the Sunshine Loan, by 1 trillion won more than originally planned this year, with the government and financial sector sharing the funding burden.

Additionally, at the end of this month, Korea Asset Management Corporation (KAMCO) will begin purchasing delinquent loans worth 2 trillion won, and the 'Consumer Credit Act' bill, which allows financial companies to support delinquent borrowers on their own, will be submitted to the National Assembly within this year.

Moreover, a 'Plan to Create an Elderly-Friendly Financial Environment' will be announced soon to support the elderly, who are vulnerable to exclusion in the digital era.

Chairman Eun stated, "We will ensure that the elderly can transact under fair conditions without discrimination between offline and online channels and develop financial products exclusively for the elderly to support a stable life after retirement."

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