Financial Services Commission "Considering Additional Extension of COVID-19 Loan Maturities"

Son Byung-du, Vice Chairman of the Financial Services Commission (Photo by Hyunmin Kim kimhyun81@)

[Asia Economy Reporter Kim Hyo-jin] Sohn Byung-doo, Vice Chairman of the Financial Services Commission, stated on the 30th regarding measures such as the temporary extension of loan maturities in the financial sector due to the novel coronavirus infection (COVID-19), "As the expiration of the operation period approaches, we will consider with financial companies whether to extend the deadline and normalization plans."

Vice Chairman Sohn made these remarks while presiding over the 'Financial Risk Response Team Meeting' at the Korea Federation of Banks in Jung-gu, Seoul, on the same day.

The financial authorities, considering the impact of COVID-19, are implementing measures such as temporarily extending the loan maturities of small and medium-sized enterprises and small business owners at commercial banks until September, and somewhat relaxing certain regulations on financial companies until the same period.

Vice Chairman Sohn also emphasized, "Securing funds through supplementary budgets is of utmost importance for the smooth implementation of the livelihood finance stabilization package program operated by the government," urging the National Assembly to promptly discuss the supplementary budget.

Regarding the June 17 real estate measures, Vice Chairman Sohn pointed out, "For the follow-up measures to be implemented smoothly, it is essential that the public be properly informed about regulatory changes at the frontline counters of financial companies, which are the points of contact with the people," and requested, "I ask the management of financial companies to pay special attention to frontline employees' understanding of regulations and smooth guidance."

The government has banned housing mortgage loans (jumdae) for all housing sales and rental businesses starting from the 1st of next month to block real estate speculation using corporations. Additionally, to receive housing mortgage loans in regulated areas, stricter requirements have been imposed, such as disposing of existing housing within six months and moving into the new housing.

Meanwhile, the Financial Services Commission has confirmed that from February to the 26th of this month, it has provided financial support including loans and guarantees amounting to 170,300 cases and 146.1 trillion won in total to small and medium-sized enterprises and small business owners related to COVID-19.

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