Geosungbeom, Financial Services Commission Chairman, "Extension of Loan Maturity and Repayment Deferral for SMEs and Small Business Owners Until March Next Year"

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[Asia Economy Reporter Jeon Jinyoung] Financial Services Commission Chairman Ko Seung-beom announced on the 15th that the deadline for loan maturity extensions and repayment deferrals will be extended until March next year to alleviate the damage suffered by small and medium-sized enterprises and small business owners due to the prolonged COVID-19 pandemic.

Chairman Ko stated at the ruling party-government meeting held at the National Assembly that morning, "As COVID-19 has prolonged, concerns have been raised that repayment burdens are accumulating and financial institution insolvencies may become apparent."

He added, "Self-employed individuals and small business owners continue to face operational difficulties as the spread of COVID-19 worsens. The financial sector also agrees that support is inevitable. However, the financial sector has expressed the opinion that a phased normalization is necessary considering the repayment burdens on borrowers."

He continued, "As a result of gathering opinions, there was a consensus that it is necessary to extend the loan maturity extension and repayment deferral once more while implementing supplementary measures together. It was agreed to extend until March 2022 and to prepare complementary methods."

Chairman Ko also said, "We will improve the credit recovery system in the banking sector to allow borrowers who have difficulty repaying to check their debt burden before falling into delinquency, expand the support targets, and strengthen financial support. We will supply liquidity through policy financial institutions and manage it thoroughly without gaps."

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