Loan Expansion, Maturity Extension, and Interest Rate Reduction for Affected SMEs... Distribution of 200,000 Masks to Underprivileged Groups
[Asia Economy Reporter Kwon Haeyoung] Shinhan Financial Group announced on the 2nd that it will establish and implement a comprehensive support plan involving all 16 group companies amid concerns over the spread of damage caused by the novel coronavirus.
As financial support, Shinhan Bank plans to significantly increase the scale of new loans to small and medium-sized enterprises affected by the spread of the coronavirus. It will defer repayment schedules of existing loans and reduce interest rates by up to 1 percentage point for extensions and refinancing. In addition to supporting domestic affected companies, it will also seek support measures for local Korean residents and Korean companies through Shinhan’s China branch.
Shinhan Card intends to support small business owners vulnerable to the contraction of private consumption in various ways. For 2.32 million small merchants with annual sales under 500 million KRW, it will provide ▲ 2-3 months of interest-free installment services ▲ integrated marketing support through the MySHOP win-win platform ▲ consumption impact analysis support using big data ▲ reduction of interest rates on business loans for merchants.
Shinhan Life and Orange Life will defer insurance premium and insurance contract loan interest payments for up to six months for customers directly affected. They will also introduce a special reinstatement system to prevent contract termination due to non-payment of premiums. Furthermore, preferential interest rates will be offered on SOHO business loans for service and food service businesses whose sales have declined compared to the previous month.
Jeju Bank will provide new loans up to a maximum of 300 million KRW per company to local small business owners and SMEs expected to be hit in tourism, lodging, and food sectors. It will also offer financial consulting services such as finance, taxation, marketing, and management diagnosis. Shinhan Savings Bank plans to support mainly the food and lodging industries through maturity extensions, interest rate adjustments, and changes in repayment methods.
Additionally, a total of 200,000 masks will be distributed to marginalized groups such as the elderly, children, disabled persons, and low-income families. To prevent infectious diseases among customers visiting branches, coronavirus information notices will be installed inside the premises, and hand sanitizers will be permanently placed at each counter. For employee health management, thermal cameras have been installed at main office entrances, and all employees are required to wear masks as a group-wide effort to prevent the spread of infectious diseases.
Moreover, until the situation subsides, the group plans to refrain from large-scale gatherings such as meetings, business trips, and group training sessions across the entire group.
A Shinhan Financial Group official said, "In a situation where public concern over the novel coronavirus is high, we have prepared a comprehensive support plan at the group level to fulfill our role as a responsible corporate citizen. We hope that Shinhan’s warm finance, involving all group companies, will provide some support to the affected companies and customers."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
