Yeo Policy Committee: "Financial Authorities Must Establish Measures for Maturity Extension and Repayment Deferral"

"3 Highs Complex Crisis Still Makes Life Difficult"

Sung Il-jong, Chairman of the Policy Committee of the People Power Party, is delivering opening remarks at the Regulatory Innovation Party-Government Council held at the National Assembly on the 5th. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Hyunju Lee] The Policy Committee of the People Power Party requested the financial authorities on the 18th to prepare alternatives ahead of the expiration of the COVID-19 related loan maturity extension and repayment deferral measures scheduled to end at the end of this month. The maturity extension and repayment deferral measures for small business loans were first implemented in April 2020 to support small business owners struggling with management difficulties due to COVID-19 and have been extended four times to date.

Seong Il-jong, chairman of the People Power Party Policy Committee, stated in a release on the same day, "The period for recovery to normal business operations has not even passed half a year yet, and due to complex crises such as high interest rates, high exchange rates, and high prices caused by international environmental changes including the Ukraine invasion and abnormal climate phenomena, the livelihood of the people remains difficult."

Chairman Seong urged, "Since the financial authorities have formed the 'Maturity Extension and Repayment Deferral Soft Landing Consultative Body' starting in July, please prepare alternatives so that borrowers can receive sufficient opportunities and support for normalization according to their situations."

Specifically, he requested the prompt promotion of measures such as the Safe Conversion Loan, which converts high-interest variable-rate loans into low-interest fixed-rate loans; a low-interest refinancing program that replaces high-interest business debts with low-interest ones; the New Start Fund for debt adjustment; and the establishment of a refinancing loan platform that executes refinancing loans through new lending institutions.

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