'Rent Reduction, Mask Support'... Financial Sector Rolls Up Sleeves to Overcome COVID-19

On the 21st, as the possibility of community spread of the novel coronavirus (COVID-19) increases, citizens wearing masks are visiting Mangwon Market in Mapo-gu, Seoul. Photo by Mun Ho-nam munonam@

[Asia Economy Reporter Kwon Haeyoung] As COVID-19 rapidly spreads domestically, the financial sector has rolled up its sleeves to support local residents, small business owners, and small and medium-sized enterprises (SMEs).

According to the financial sector on the 23rd, IBK Industrial Bank of Korea will reduce the rent of buildings it owns by 30% (up to 1 million KRW per month) for three months starting in March to support small business owners and SMEs struggling due to COVID-19.

With this rent reduction by IBK Industrial Bank, a total of 55 small business owners and SMEs will benefit, easing their rent burden by about 50 million KRW over three months.

An IBK Industrial Bank official stated, "Although the bank does not own many rental buildings, all small business owners and SMEs residing in these buildings are valuable customers beyond just tenants," adding, "We are reducing rent for tenants facing management difficulties such as decreased sales."

KB Kookmin Bank is launching emergency support for residents of Daegu City and Gyeongbuk region, designated as 'special management areas for infectious diseases' due to the spread of COVID-19. Starting from the 25th, the bank will temporarily waive fees for internet banking, Star Banking, and automated teller machine (ATM) usage for customers in Daegu and Gyeongbuk. This fee waiver for non-face-to-face channels aims to provide financial convenience and minimize customer damage caused by COVID-19. However, customers using other banks' ATMs, customers with accounts at other banks, and those using brand-affiliated ATMs are excluded from this support.

Support will also be provided to small business owners and vulnerable groups in Daegu and Gyeongbuk. The bank plans to purchase daily necessities worth 100 million KRW at traditional markets in the region using local love gift certificates and deliver them to disadvantaged neighbors such as children at child welfare centers and regional children's centers.

Additionally, from the 24th, the Daegu Chimsandong Branch, which is reopening operations on a limited basis, and the substitute branch, Daegu 3 Industrial Complex Comprehensive Financial Center, will deliver about 10,000 masks and hand sanitizers to vulnerable groups in the region.

Shinhan Bank delivered 10,000 KF94 masks to Daegu City on the 21st. The masks supported by Shinhan Bank will be distributed to vulnerable groups in the region, including the elderly, disabled, and low-income families, through social welfare organizations under Daegu City.

Shinhan Financial Group announced a comprehensive support plan earlier this month involving all companies within the group regarding COVID-19. Collaborating with organizations such as the Korea National Council on Social Welfare, the Comprehensive Support Center for the Elderly Living Alone, the Milal Welfare Foundation, and the Children and Future Foundation, they have provided 200,000 KF94 masks to vulnerable groups.

A Shinhan Bank official said, "We quickly decided to provide additional masks to help prevent the spread of COVID-19 infection," adding, "We will continue to fulfill our role as a corporate citizen in disaster situations and practice warm finance continuously."