Eun Sung-soo Urges Policy Financial Institutions to "Boldly Support Companies Affected by COVID-19"

Financial Services Commission Chairman Eun Sung-soo is holding a meeting with heads of policy financial institutions such as Korea Development Bank, Industrial Bank of Korea, and Export-Import Bank of Korea at the Bankers Club of the Korea Federation of Banks in Jung-gu, Seoul, on the 26th. From the left, Lee Dong-gul, Chairman of Korea Development Bank; Eun Sung-soo, Chairman of the Financial Services Commission; Yoon Jong-won, President of Industrial Bank of Korea; and Bang Moon-kyu, President of Export-Import Bank of Korea.

[Asia Economy Reporter Kim Hyo-jin] Eun Sung-soo, Chairman of the Financial Services Commission, on the 26th urged policy financial institutions to take more bold actions in providing financial support to companies affected by the spread of the novel coronavirus infection (COVID-19).

Chairman Eun made this request during a breakfast meeting held that morning at the Bankers Club in Jung-gu, Seoul, with heads of policy financial institutions including Lee Dong-geol, Chairman of KDB Industrial Bank, Yoon Jong-won, President of IBK Industrial Bank, and Bang Moon-kyu, President of Korea Eximbank.

He also repeatedly emphasized clear indemnification for frontline staff to alleviate their anxiety regarding support for companies affected by COVID-19. Previously, the government decided that even if financial support to COVID-19 affected companies later becomes non-performing, the responsible personnel will be indemnified unless there is intentional or gross negligence.

Chairman Eun added, "When evaluating the management performance of policy financial institutions, the decrease in profits due to COVID-19 support will not be reflected, and efforts to support will be additionally considered through extra points, etc., to ease the burden on institutions, and we will do our best."

Lee Dong-geol, Chairman of KDB Industrial Bank, expressed his intention, saying, "We will continuously monitor financial difficulties and strive to ensure prompt support for affected companies."

Yoon Jong-won, President of IBK Industrial Bank, introduced various financial supports such as ultra-low interest loans for small and medium-sized enterprises and self-employed persons struggling due to COVID-19, as well as the 'Good Rent' policy which reduces rent for IBK-owned real estate, stating, "I will personally ensure that the effect of financial support is clearly felt on the ground." The 'Good Rent' policy reduces rent by 30% up to a monthly limit of 1 million KRW for buildings owned by IBK from March to May.

Bang Moon-kyu, President of Korea Eximbank, said, "We will actively promote the COVID-19 related financial support programs to ensure that no cases miss out on support due to lack of awareness."

On the 7th, the government held the 'Economic Ministers' Meeting on Novel Coronavirus Response' and finalized a financial support plan to supply a total of 2 trillion KRW, including 300 billion KRW from Industrial Bank, 100 billion KRW from IBK, 1 trillion KRW from Korea Eximbank, 300 billion KRW from Korea Credit Guarantee Fund, 100 billion KRW from Korea Technology Finance Corporation, 100 billion KRW from Regional Credit Guarantee Foundations, 25 billion KRW from Small and Medium Business Corporation, and 20 billion KRW from Small Enterprise and Market Service.