Financial Authorities and Association Launch On-Site Support System for Full Financial Sector COVID-19 Assistance

A bank loan product was launched on the 1st for small business owners affected by the spread of the novel coronavirus (COVID-19). On the 31st, the Financial Services Commission and the Korea Federation of Banks announced that they will accept applications for a fixed interest rate credit loan of 1.5% per annum with a maturity of one year from tomorrow until the end of 2020. The loan limit is up to 30 million KRW. This product targets small business owners with annual sales of 500 million KRW or less who have high credit ratings. The borrower's credit rating must correspond to levels 1 to 3. The photo shows a counter at a commercial bank in Seoul on the day. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Kangwook Cho] Financial authorities, policy financial institutions, and various financial sector associations announced on the 1st that they will operate an on-site support system to ensure that financial support measures in response to the novel coronavirus infection (COVID-19) function smoothly.

Accordingly, Financial Services Commission Chairman Eun Sung-soo, senior officials from the FSC, Financial Supervisory Service Governor Yoon Seok-heon, senior officials from the FSS, heads of policy financial institutions, association presidents, and executives plan to visit policy financial institutions and commercial bank branches from today until the 3rd.

They will check whether support programs starting today, such as the annual 1.5% ultra-low interest rate loans for small business owners, are operating properly on-site and plan to prepare improvement measures if necessary. They will also identify the preparation and execution status of frontline bank branches that actually supply funds and any difficulties encountered during the process.

They will thoroughly prepare by collecting on-site opinions to ensure that the implementation of financial stability measures such as the Bond Market Stabilization Fund, Securities Market Stabilization Fund, P-CBO, and support for corporate bond and CP refinancing issuance proceeds without any issues.

To avoid burdening bank branches with on-site financial sector support, bank branches will not be required to make separate prior preparations, and inspections will be conducted in compliance with COVID-19 prevention guidelines with a minimal workforce (teams of two).