The ruling party and the government extend the maturity extension and repayment deferral for small business loans by 6 months

[Image source=Yonhap News]

[Asia Economy Reporter Jeon Jinyoung] The Democratic Party of Korea and the Financial Services Commission decided on the 15th to extend the loan maturity extension and repayment deferral by six months to alleviate the damage suffered by small business owners and self-employed individuals due to the prolonged COVID-19 pandemic.

Park Wanju, the chairman of the Policy Committee, stated in a briefing after the party-government consultation that morning, "Considering the difficulties faced by small and medium-sized enterprises and small business owners due to the continued spread of COVID-19, the party and government agreed to extend the maturity extension and repayment deferral measures by six months," adding, "There was a consensus that the extension is necessary until the end of March next year."

The government will coordinate with the financial sector to minimize concerns about potential insolvency resulting from the extension measures and will prepare and implement supplementary plans to ensure normal progress. The government plans to simultaneously promote normalization within repayment capacity, support debt restructuring for borrowers who can repay, and supply liquidity through policy financial institutions.

Chairman Park said, "The second maturity for small business loans is due in September, and the party and government have been practically reviewing the extension," adding, "Details of the public-private consultation will be announced tomorrow."

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