Small Business Owners Breathe Easier... Loan Extensions Continue After September

Five Major Financial Holding Company Chairmen Respond to Authorities' Request with "Active Participation"

Financial Services Commission Chairman Kim Ju-hyun (fourth from the left) is taking a commemorative photo with the chairpersons of the five major financial holding companies on the 21st at the Government Seoul Office in Jongno-gu, Seoul. From the left, Bae Bu-yeol, Vice President of NongHyup Financial Group; Ham Young-joo, Chairman of Hana Financial Group; Son Tae-seung, Chairman of Woori Financial Group; Kim Ju-hyun, Chairman of the Financial Services Commission; Yoon Jong-kyu, Chairman of KB Financial Group; Cho Yong-byeong, Chairman of Shinhan Financial Group. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Minwoo Lee] The extension of the maturity and repayment deferral measures for small business loans, scheduled until September, is expected to be further extended. This comes as the chairpersons of the five major financial holding companies have all pledged active support.

According to industry sources on the 24th, KB Financial Group Chairman Yoon Jong-kyu, Shinhan Financial Group Chairman Cho Yong-byeong, Hana Financial Group Chairman Ham Young-joo, Woori Financial Group Chairman Sohn Tae-seung, and NH Nonghyup Financial Group Vice President Bae Bu-yeol promised during a meeting with Financial Services Commission Chairman Kim Ju-hyun on the 21st, "We will reduce interest rates for high-interest individual business owners and extend loan maturities without repayments." This was in response to Chairman Kim’s request for active cooperation on financial livelihood issues. Earlier, on the 14th, the government announced a debt relief plan worth '125 trillion won + α' at the 2nd Emergency Economic and Livelihood Countermeasures Meeting to ease the debt burden on financially vulnerable groups.

In particular, Chairman Kim emphasized the importance of the financial sector’s role in the maturity extension and repayment deferral for small business loans, which are set to end in September, stating, "Amid rising prices and interest rates, the difficulties of self-employed individuals, small business owners, and vulnerable groups with limited capacity to respond are increasing." While announcing a small business debt adjustment plan through the 'New Start Fund' of 30 trillion won, he asked the main financial institutions to make efforts for the remaining small business loans not covered by this fund. The aim is to prevent the rapid recall of small business loans.

The Financial Services Commission proposed that if borrowers under the maturity extension and repayment deferral measures apply, banks autonomously extend maturities and defer repayments for 90-95% of them. The financial holding company chairpersons stated they would actively participate in this plan and also make their own efforts.

Chairman Sohn Tae-seung said, "It is beneficial for small business owners and also helps the soundness of financial institutions to gradually repay in installments per borrower and extend through the maturity extension program." Chairman Ham Young-joo also said, "We will actively participate in the livelihood stabilization projects prepared by the Financial Services Commission and support financial programs well to provide practical help."

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