Loan Industry Grants 9.4 Billion KRW Debt Suspension and Reduction to COVID-19 Vulnerable Groups

[Asia Economy Reporter Kim Min-young] This year, the amount of debt deferred or reduced through voluntary support by the loan industry reached 9.4 billion KRW.

The Korea Financial Services Association for Private Loans announced on the 22nd that debt deferrals and reductions voluntarily carried out by major loan companies due to the novel coronavirus infection (COVID-19) amounted to 9.4 billion KRW.

Twenty-seven loan companies provided financial support targeting small business owners and self-employed individuals facing difficulties in debt repayment due to COVID-19. As of the end of last month, they deferred debt worth 4 billion KRW for 876 people and reduced debt worth 5.4 billion KRW for 1,168 people.

In cases where the primary debtor died due to COVID-19, partial or full exemption of loan repayment was granted. If the primary debtor suffered direct damage from COVID-19, interest payment deferrals or suspension of collection measures were applied, or loan maturities were extended by at least six months. However, household loans, real estate sales and rental businesses, and entertainment-related industries were excluded from support.

Im Seung-bo, chairman of the Korea Financial Services Association for Private Loans, said, “The loan industry will continue to strive to provide assistance until the COVID-19 pandemic is over.”

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