NongHyup Financial Group Launches '27 Trillion KRW + α' Financial Support for Vulnerable Groups

Sharing the Burden of Vulnerable Borrowers Including Small Business Owners Amid Rapid Interest Rate Hikes

Comprehensive Support for Financially Marginalized Groups Such as Youth and Farmers

Preparation of Alternative Programs for COVID-19 Financial Support

[Asia Economy Reporter Sim Nayoung] NH Nonghyup Financial Group announced on the 28th that it will provide financial support worth 27 trillion KRW plus alpha for financially marginalized groups such as farmers and youth, as well as small business owners and self-employed individuals. This support is divided into three major parts: the NH Win-Win Support Program for financially vulnerable borrowers, the operation of a substitute program for COVID-19 financial support, and participation in government livelihood stabilization measures. It is expected that approximately 480,000 customers will benefit from this.

First, the 'NH Win-Win Support Program' will be launched. This measure aims to alleviate the burden on vulnerable borrowers suffering from rapid interest rate hikes and economic slowdown. Through a customized program that reduces financial burdens according to the characteristics of vulnerable borrowers, benefits will be provided to a total of about 110,000 people.

Preferential interest rate limits for loans related to farmers will also be applied up to a maximum of 0.30%. For comprehensive smart farm funds for young farmers, preferential interest rates of up to 1.60% will be offered to ease the interest burden on farmers.

For personal credit loan extensions of low-credit and multiple debtors, the 'Low-Credit and Diligent Repayment Borrower Loan Principal Reduction Program' will be implemented, which automatically repays the principal with interest amounts exceeding a certain level.

Programs for vulnerable groups such as youth and low-income earners have already started since the end of August. Preferential interest rates for youth jeonse and monthly rent products have been doubled from the previous rate, applying up to 0.60%. Preferential interest rates for low-income financial products, including Sae Hope Holssi loans, have been increased by up to 0.50%. This has minimized the interest burden caused by the rise in base interest rates.

Additionally, existing loans for small business owners and youth have been converted to long-term installment repayments to reduce the repayment burden on borrowers. The bank will bear the insurance premiums for lease deposit return guarantees and stamp duties for improving the financial structure of vulnerable borrowers, instead of the customers.

To ensure a smooth landing for vulnerable borrowers such as small business owners who received COVID-19 financial support, all affiliates of Nonghyup Financial Group will join forces. NH Nonghyup Bank has prepared a 'COVID-19 Smooth Landing Program Support Plan.' NH Nonghyup Capital and NH Savings Bank will also participate through similar programs.

The group will actively participate in government-led livelihood stabilization measures such as the New Start Fund and low-interest refinancing programs for small business owners. To support vulnerable groups, dedicated counters and responsible managers will be appointed at Nonghyup Bank branches nationwide. A 'Task Force (TF) for Comprehensive Business Support' for self-employed and small businesses will be established to promote support for vulnerable groups, including guidance on debt adjustment programs.

Son Byunghwan, Chairman of Nonghyup Financial Group, said, "It is time for finance to step up to resolve the difficulties of vulnerable groups, including farmers, youth, and small business owners, who are suffering from global interest rate hikes and inflation." He added, "Nonghyup Financial will fully utilize excellent personnel and networks across the country to repay customers who love Nonghyup."

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