Hana Financial Group Provides Annual Financial Support of 26 Trillion KRW to 700,000 Vulnerable Individuals

[Asia Economy Reporter Song Seung-seop] Hana Financial Group announced on the 4th that it will provide financial support worth 26 trillion won annually to about 700,000 vulnerable people facing economic difficulties due to the prolonged COVID-19 pandemic and rising interest rates.

The ‘Happiness Finance Connected as One’ project promoted by Hana Financial focuses on four key areas: ▲small business owners and self-employed ▲low-income, youth, and vulnerable borrowers ▲household loan real demanders ▲social value creation. Major affiliates within the group plan to systematically provide and operate various financial support programs through organic linkage and collaboration.

For 350,000 small business owners and self-employed individuals, 19 trillion won will be invested to alleviate financial burdens. They will actively participate in the ‘New Start Fund’ program. The COVID-19 financial support, which is about to end, will continue with an in-house ‘maturity extension and installment repayment deferral’ program starting in October. Along with the ‘High-Interest Small Business Loan Interest Reduction’ program, which reduces interest rates by up to 1 percentage point when extending the term of loans with interest rates exceeding 7% annually, the ‘Small Business Loan Refinancing’ system, a non-bank refinancing loan program, will also be available at Hana Bank branches. Hana Card will offer a 1 percentage point interest discount on short- and long-term card loans to small merchants whose sales have decreased by more than 30% compared to before COVID-19.

Support will also be provided to 250,000 financially vulnerable groups, including youth, low-income earners, and the elderly. Targeted financial support optimized for youth, the elderly, and low-income groups will be implemented on a scale of 3 trillion won, along with various non-financial services. Starting next month, a 0.7 percentage point reduction in new loan interest rates will be offered to young entrepreneurs from prospective startups to those within seven years of establishment. Through the implementation of ‘Interest Reduction for Diligent Repayment Vulnerable Borrowers,’ interest payments exceeding 6% by low-income borrowers who have been steadily repaying loans will be used monthly to repay the principal. The ‘Pension Hana Account,’ a demand deposit product for basic pension recipients, will expand preferential interest rates up to 2.0 percentage points from the 17th, and the ‘Senior Culture Bank’ will be additionally opened within the year to serve as a gathering and digital/financial education space for the elderly.

About 90,000 household loan real demanders will receive customized support worth 4 trillion won. Hana Bank will implement a ‘Variable Interest Rate Mortgage Loan Fixed Rate Refinancing’ program for household loan borrowers who are not eligible for the ‘Safe Conversion Loan.’ Through this, borrowers with variable interest rate household loans who were excluded from benefits due to exceeding certain housing price levels will be able to reduce the burden of high-interest payments. At the same time, the ‘Safe Conversion Loan’ will be prepared for non-face-to-face application to enhance convenience.

Additionally, 1 trillion won in support will be provided over the next five years to create social value. Employment-linked internships at social innovation companies, nationwide youth startup support programs, and customized education for reemployment of early-retired middle-aged individuals will be offered. Self-reliance programs supporting the social advancement of youth about to leave protective care will also be expanded.

Ham Young-joo, Chairman of Hana Financial Group, stated, “The more difficult the domestic and international economic environment becomes, the more finance must take the lead in creating a path for growth together with the vulnerable in our society,” and added, “All employees of Hana Financial Group will strive for practical financial support.”

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