Kim Ju-hyun, Financial Services Commission Chairman, and Lee Bok-hyun, Financial Supervisory Service Governor, "Preparing Additional Support Measures for Small Business Owners"

[Asia Economy Reporter Song Hwajeong] Kim Joo-hyun, Chairman of the Financial Services Commission, and Lee Bok-hyun, Governor of the Financial Supervisory Service, stated that the difficulties faced by small and medium-sized enterprises (SMEs) and self-employed individuals are intensifying due to rising prices and interest rate hikes, and they will prepare additional financial support measures if necessary.

Chairman Kim and Governor Lee made these remarks on the 5th at the meeting room of the Foundation for Cooperation between Large, Small and Medium Enterprises and Agriculture and Fisheries, during the "Financial Issues-Related SME and Small Business Industry Roundtable" jointly hosted by the Ministry of SMEs and Startups, the Financial Services Commission, and the Financial Supervisory Service.

Chairman Kim said, "Although business restrictions due to COVID-19 have almost normalized, many people are experiencing difficulties due to unexpected rapid price increases and interest rate hikes," adding, "While these difficulties are a global phenomenon, as a policy official, I feel sorry for those of you facing unforeseen hardships."

He continued, "Now is the time for all of us to come together with strength and wisdom to overcome the current difficulties and calmly prepare for the future," and explained, "In July, the Financial Services Commission announced a support package worth 125 trillion won to stabilize the economic activities and housing of self-employed individuals affected by COVID-19 and those with low incomes, which will be implemented soon."

Chairman Kim added, "We will closely examine the difficulties of SMEs and the self-employed and prepare additional financial support measures if necessary."

Governor Lee said, "The Financial Supervisory Service has supported the smooth implementation of the government's livelihood stabilization measures through frontline branches of financial companies, and has actively encouraged the financial sector to extend maturities and defer principal and interest repayments for companies affected by COVID-19, as well as to expand loan handling considering the difficult financial conditions of SMEs," explaining, "For small business owners and SMEs whose performance has deteriorated due to COVID-19, we have reflected future recovery potential in credit evaluations and supported minimizing disadvantages in limits and interest rates for normal borrowers without insolvency even if their credit ratings decline."

He added, "We fully understand the concerns about the expiration of loan maturity extensions and repayment deferrals at the end of September," and said, "The financial authorities are deeply considering ways to alleviate the hardships of those in difficulty and will closely coordinate with related ministries to prepare detailed support measures to prevent the burden on struggling small business owners and SMEs from increasing."

The roundtable was organized to listen as much as possible to the voices from the field of SMEs and small business owners regarding the smooth transition of the maturity extension and repayment deferral measures implemented since April 2020, and the new start fund scheduled to be implemented from October, and to reflect these in policy. This is the first time that the Minister of SMEs and Startups, the Chairman of the Financial Services Commission, and the Governor of the Financial Supervisory Service have gathered in one place to hear about the financial difficulties of SMEs and small business owners.

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