Dokyu-sang "Extension of Maturity and Interest Deferral: Provisioning and Soundness Classification upon Signs of Insolvency" (Update)

"Concerns Over Unfair Trading in the Securities Market... Thorough Inspection and Improvement Efforts"

Dokyu-sang, Vice Chairman of the Financial Services Commission

[Asia Economy Reporter Kwangho Lee] Do Kyoo-sang, Vice Chairman of the Financial Services Commission, said on the 25th, "In the smooth transition process of maturity extension and interest deferral in the financial sector, if signs of insolvency are detected, please adjust the soundness classification and accumulate sufficient reserves."

Vice Chairman Do held a meeting of the Non-Face-to-Face Financial Risk Response Team at the Government Seoul Office on the same day and stated, "The entire financial sector decided to extend the maturity extension and repayment deferral measures until the end of September this year, after two extensions since April 1 last year."

Vice Chairman Do explained, "The five major principles of smooth transition support were designed to prevent a sudden increase in the borrower's repayment burden in the future, considering the real economy conditions and the financial sector's capacity to bear the burden," adding, "I understand that the banking sector is preparing and implementing a smooth transition system under the principles of supporting small and medium-sized enterprises and small business owners and preventing insolvency, including various repayment methods and pre-consultations."

The five major principles of smooth transition support are providing optimal repayment plan consulting, granting a repayment period longer than the deferral period, not charging interest on deferred interest, waiving early repayment fees, and allowing the borrower to make the final choice of the repayment method.

Vice Chairman Do also requested, "Please prepare without fail by early establishing the IT system and simplifying the approval procedures related to repayment methods so that a smooth transition can be achieved while minimizing the borrower's burden."

He added, "The financial authorities will also actively support by forming an on-site support team together with each financial association to communicate with the field, receive difficulties, and improve systems."

Vice Chairman Do further emphasized, "Concerns about unfair trading in the securities market are also increasing," and said, "We will make thorough inspections and efforts to improve to eradicate unfair trading through organic cooperation with related agencies."

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