Presidential Office: "Small Business Financial Package Proceeding Smoothly... We Will Be a Government That Takes Action"

Implementation of Bank Sector's Livelihood Finance and Small Business Debt Restructuring Loans
Second Financial Sector Interest Refund Scheduled for the 29th of Next Month

The Presidential Office announced on the 26th that it is steadily implementing various financial support packages to alleviate the interest burden on small business owners, which President Yoon Suk-yeol has consistently emphasized from the end of last year to the recent public discussion forums on livelihood issues.

According to Kim Soo-kyung, spokesperson for the Presidential Office, the government and the banking sector, following President Yoon's instructions, prepared a financial package worth 2.9 trillion won for small business owners and announced detailed plans at two livelihood discussion forums, which are currently being implemented without any issues.

Earlier, in November last year, President Yoon attended the 'Korea Small Business Owners Conference' for the first time as a sitting president and instructed the relevant ministries to swiftly prepare special support measures to reduce the high-interest financial burden on small business owners with a sense of urgency.

At the 4th livelihood discussion forum held on the 17th of last month under the theme "Financial Coexistence, Expanding the Ladder of Opportunity," and the 10th forum held on the 8th under the theme "Small and Medium Enterprises and Small Business Owners Running Together, A Livable Economy," President Yoon ordered the prompt announcement of financial support measures for small business owners and self-employed individuals.

[Image source=Yonhap News]

The financial package for small business owners announced by the government includes ▲banking sector livelihood finance ▲small business owner refinancing loans ▲interest refunds for the secondary financial sector.

Regarding banking sector livelihood finance, the banking sector has prepared a total of 2.1 trillion won in livelihood financial support measures and has refunded interest to small business owners and self-employed individuals since the 5th of this month, executing an interest cashback of 1.36 trillion won so far.

Additionally, from today, the government has started supplying 500 billion won worth of refinancing loans for small business owners. This program refinances high-interest loans above 7% into policy funds with a fixed interest rate of 4.5%, lowering the interest rate by at least 2.5 percentage points. The repayment terms are also long-term installment payments over 10 years, which is expected to reduce the repayment burden.

It is expected to benefit about 15,000 small business owners, and applications can be made online and through regional centers of the Small Enterprise and Market Service.

Furthermore, on the 29th of next month, the government plans to refund a total of 300 billion won in interest, up to 1.5 million won per person, to 400,000 small business owners who have taken out high-interest loans from the secondary financial sector such as savings banks and mutual finance institutions.

Spokesperson Kim explained, "President Yoon's first election pledge was to save small business owners and the self-employed, and the government's first national agenda is the recovery and leap forward of small business owners and the self-employed affected by COVID-19," adding, "The government will continue to strive to be a warm government that holds the hands of small business owners and a government that takes action to solve livelihood issues."

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