Providing Treatment Facilities, Shortening Loan Reviews... Banking Sector's Comprehensive Support for COVID-19 Damage

On the morning of the 12th, officials are preparing for testing at the screening clinic in front of the Korea Building in Sindorim-dong, Guro-gu, Seoul, where a large number of COVID-19 cases were confirmed. (Yonhap News)

[Asia Economy Reporter Kim Hyo-jin] Various support measures from the banking sector to assist victims of the novel coronavirus infection (COVID-19) are being expanded.

On the 14th, according to the banking sector, IBK Industrial Bank recently decided to provide its employee training facility, the Chungju Training Center, as a COVID-19 residential treatment center. The training center will be used to treat mild patients in self-quarantine due to the shortage of treatment facilities in the Daegu and Gyeongbuk regions. The center can accommodate 179 people, with about 70 medical staff and administrative personnel stationed on site.

Woori Financial Group is providing its Anseong Training Center in Gyeonggi Province as a residential treatment center. Woori Financial’s Anseong Training Center has a total of 102 rooms, 300 beds, and internal cooking facilities. Woori Financial explained that its location on the outskirts, where there are fewer residents, makes it suitable as a COVID-19 residential treatment center.

Major banks have established various COVID-19 response systems this year and accelerated support for victims.

KB Kookmin Bank has established and is operating a 'Rapid Review Support Team' and an 'On-site Support Team' to provide swift and smooth financial support to companies affected by COVID-19. They also offer a service that allows guarantee applications for loans backed by regional credit guarantee foundations to be submitted at bank branches without visiting the foundation’s branch.

Shinhan Bank operates an 'Overseas Rapid Support Team' for domestic companies expanding abroad, as international travel restrictions have become a reality. The Overseas Rapid Support Team is composed mainly of overseas staff stationed in 20 countries and works with the head office’s Global Business Division to assist domestic companies overseas in resolving financial difficulties.

Hana Bank is implementing a plan to provide management stabilization funds and other support at the discretion of branch offices even without proof of damage from relevant administrative authorities. When existing loans reach maturity or installment repayment dates, repayment can be deferred for up to one year without principal repayment, and interest rate reductions of up to 1.3 percentage points are also offered. Upon receiving such requests, the reviewing officer examines them on the same day and responds with the decision.

NH Nonghyup Bank established the 'COVID-19 Emergency Financial Support Committee' chaired by the deputy head of the credit review division on the same day. It also allows non-face-to-face (telephone) processing for loan maturity extensions for individuals or sole proprietors in the Daegu and Gyeongbuk regions.

Woori Bank operates a special dedicated review team to provide smooth financial support to individual business owners and small and medium enterprises in the Daegu and Gyeongbuk regions. The special dedicated review team selects priority COVID-19 support businesses in the Daegu and Gyeongbuk areas and implements a 'Rapid Review Support' system that notifies the results of loan applications within two business days.