Financial Services Commission "Additional Loan Maturity Extensions to Be Finalized and Announced This Month"

Son Byung-du, Vice Chairman of the Financial Services Commission, Reaffirms at Financial Risk Response Team Meeting
"Thorough COVID-19 Prevention Measures" Urged to Financial Sector

Son Byung-du, Vice Chairman of the Financial Services Commission. / Photo by Moon Ho-nam munonam@

[Asia Economy Reporter Kim Hyo-jin] Financial authorities have reiterated their position to finalize measures such as additional extensions of loan maturities in response to the novel coronavirus disease (COVID-19) within this month.

On the 19th, Sohn Byung-doo, Vice Chairman of the Financial Services Commission (FSC), said at a Financial Risk Response Team meeting held at the Korea Federation of Banks in Jung-gu, Seoul, "The government is reviewing whether to extend temporary measures such as loan maturity extensions, interest repayment deferrals, and financial regulation flexibilization in preparation for the prolonged COVID-19 situation," adding, "We will try to finalize and announce this within August if possible."

Financial Services Commission Chairman Eun Sung-soo also expressed the same stance after a meeting with heads of financial associations on the 12th, stating, "It is better to end instability quickly."

Existing measures related to COVID-19, such as loan maturity extensions for small business owners and SMEs, are applied until next month. Financial authorities and the financial sector are in the final stages of discussions regarding some issues, including additional interest repayment deferrals.

Vice Chairman Sohn also expressed concern, saying, "I worry that the momentum for economic recovery, which was hard to achieve, might be broken by the COVID-19 pandemic," and urged the financial sector to return to basics and thoroughly implement quarantine measures.

He specifically requested ▲reducing density and conducting periodic disinfection at high-risk facilities such as call centers ▲compliance with strengthened workplace quarantine rules, and said, "Please carefully ensure that quarantine rules operate flawlessly in the financial sector's field."

Regarding the Comprehensive Financial Support Center for areas affected by recent heavy rains, jointly established by financial authorities and the financial sector, Vice Chairman Sohn promised, "We will comprehensively counsel residents and businesses in the affected areas on financial difficulties and provide necessary support through a one-stop service."

He also said, "Through a dedicated support team for the disaster sites, we will identify difficulties in major affected areas and implement customized support, and operate dedicated counters for affected companies at financial institution branches in heavily damaged areas to ensure prompt assistance."

Meanwhile, financial authorities have reported that from February to the 14th of this month, a total of 1.895 million cases amounting to 178 trillion won in COVID-19-related financial support have been provided to small business owners and others through policy financial institutions and commercial banks.

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