Candidate Kwon Chil-seung: "Loan Maturity Extensions Should Be Done When Necessary"

Minister of SMEs and Startups candidate Kwon Chil-seung is attending the confirmation hearing held at the National Assembly on the 3rd, responding to questions from lawmakers. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Lee Junhyung] Kwon Chilseung, nominee for Minister of SMEs and Startups, said on the 3rd that "when it is necessary, it must be done" regarding the extension of loan maturities for small and medium enterprises (SMEs) and small business owners.

On the same day, during the confirmation hearing held by the National Assembly's Industry, Trade, Energy, SMEs and Startups Committee, Kwon responded this way to a question from Hong Jungmin, a member of the Democratic Party of Korea.

He said, "The burden of loan repayment is increasing," and added, "I understand that I have been conveying the Ministry of SMEs and Startups' opinions at the Financial Risk Response Task Force meetings held by the Financial Services Commission."

When Hong Jungmin asked, "There are concerns that moral hazard may occur or financial sector risks may increase," Kwon replied, "There is always risk involved when implementing any policy."

Kwon emphasized, "Considering the current situation and mutual fairness, the side effects that would occur if the loan maturity extension is not implemented are greater than those if it is," and added, "If it needs to be implemented, I think it should be done."

He also stated, "If risk assessments are conducted at the same level as before COVID-19, many companies will not be able to have their loans extended again," and said, "I believe new risk assessment standards suitable for the COVID-19 situation should be established."

Kwon further stated, "Using the liquidation or restructuring of a company as a means or method to overcome difficult times is not appropriate."

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