"Bank Also Actively Reflects NICE Credit Ratings"... Ministry of SMEs and Startups Business Agreement

Corona19 Small Business Secondary Interest Subsidy Loan Review
Ministry of SMEs and Startups and Financial Sector's Caring Companies Join Hands
Kookmin Bank, Shinhan Bank, Woori Bank, Hana Bank

Park Young-sun, Minister of SMEs and Startups, is speaking about active support measures for small business owners affected by COVID-19 at the 'Financial Sector Caring Companies' business agreement ceremony held on the 9th at the Korea Federation of SMEs in Yeouido, Seoul.

[Asia Economy Reporter Kim Daeseop] The Ministry of SMEs and Startups announced on the 9th that it has signed a business agreement with financial sector 'Voluntary Win-Win Cooperation Companies' to actively support small business owners affected by the novel coronavirus disease (COVID-19).

The signing ceremony took place at the Korea Federation of SMEs in Yeouido, Seoul. Attendees included Park Young-sun, Minister of SMEs and Startups; Hur Yin, CEO of KB Kookmin Bank; Jin Ok-dong, CEO of Shinhan Bank; Kwon Kwang-seok, CEO of Woori Bank; and Ji Sung-kyu, CEO of Hana Bank. Together with these banks, which belong to the 'Voluntary Win-Win Cooperation Companies (Jasanghan Companies)' selected by the Ministry, various support measures were prepared.

Commercial banks have been providing secondary loan interest subsidies without guarantees at an interest rate of 1.5% since the 1st, in accordance with the government's rapid execution plan for financial support to small business owners in response to COVID-19. However, many confusions have arisen due to differing bank-specific criteria applied during the credit rating process, resulting in application rejections.

Through this agreement, financial sector Jasanghan Companies plan to actively reflect NICE Information Service's credit ratings (grades 1 to 3) when reviewing secondary loan interest subsidy applications to support these loans. Additionally, to expedite fund disbursement, each bank will expand dedicated counters for small business owners and assign employees with relevant work experience.

Along with this, the participating banks announced new support measures for small business owners affected by COVID-19.

KB Kookmin Bank will expand financial consulting at its 13 nationwide SOHO Financial Consulting Centers from the existing 3,000 cases annually to 7,200 cases to support the management stability of small business owners. Woori Bank plans to increase the number of comprehensive support centers for small business startup and financial counseling from 5 to 9. Hana Bank intends to raise the limit for management stabilization funds for SMEs and small business owners from the current 400 billion KRW to up to 1 trillion KRW.

Minister Park Young-sun emphasized, "Financial sector Jasanghan Companies are leading companies in creating a corporate ecosystem and are striving to realize the values of coexistence and mutual growth. It is especially meaningful that they have joined forces to help small business owners struggling with financing due to COVID-19." She added, "Going forward, the Ministry of SMEs and Startups will do its best to act as a mediator that identifies and connects the difficulties of small business owners and SMEs through continuous exchanges."