[Asia Economy Reporter Kim Hyo-jin] On the 9th, the Financial Supervisory Service (FSS) announced the 'COVID-19 Related Major Financial Consultation FAQ,' which summarizes the inconveniences financial consumers face in financial transactions due to the novel coronavirus disease (COVID-19) pandemic.
The FSS explained that they selected and organized issues that many consumers may experience from the financial consultation records at the FSS call center and complaints. This information is posted in the 'COVID-19 Financial Support Measures' menu accessible from the main page of the FSS internet homepage.
The FAQ includes explanations on various situations, such as whether loan repayments to financial companies can be deferred if income decreases due to business disruptions caused by COVID-19, or if there is any way to resolve difficulties in processing tasks like loan extension applications due to travel bans to Korea from the country of residence abroad.
An FSS official stated, "We will continuously identify financial inconveniences that many consumers may face and post related information."
Below are some explanations related to COVID-19 financial difficulties summarized by the FSS.
▲ Due to COVID-19, I cannot operate my academy normally and have no income. Can I defer loan repayments?
= Recently, the government announced the 'Package Program for Livelihood and Financial Stability in Response to COVID-19.' In particular, to alleviate the financial burden on vulnerable groups, for small and medium-sized enterprises and small business owners who have suffered direct or indirect damage such as decreased sales due to COVID-19, if there is no delinquency in principal and interest or capital erosion, measures such as principal maturity extension and interest payment deferral for six months from the 1st of this month are being implemented. You can visit the bank or savings bank with which you have an existing transaction relationship to receive guidance.
▲ While staying abroad, my loan maturity has arrived, and I intended to return to apply for an extension, but due to the travel ban to Korea from the country I am staying in, departure itself is impossible. Is there no solution?
= Loan maturity extension procedures can be handled through non-face-to-face methods such as telephone recording. However, since the possibility of non-face-to-face maturity extension may vary depending on the type of loan, it is necessary to inquire with the relevant bank or savings bank for detailed information.
▲ If suspected of being infected with COVID-19 at a mart, can compensation be claimed through the mart’s business liability insurance?
= For customers who visited the mart to receive compensation through the business liability insurance subscribed by the mart, it is necessary that the mart be recognized as liable for damages related to COVID-19 infection and that the case falls under the insurance payout conditions stipulated in the insurance policy.
▲ If business losses occur due to the closure of a business site caused by a confirmed case’s visit, can compensation be claimed through corporate property insurance?
= If a company that has suspended operations due to COVID-19 has subscribed to insurance covering 'business interruption losses' caused by business suspension, compensation may be provided if the insurance payout requirements stipulated in the insurance policy are met.
▲ The government temporarily exempted the obligation to maintain the credit loan collateral ratio, but a securities company executed forced sales according to the existing standards, causing losses. Is this handling problematic?
= Due to the rapid decline in the domestic stock market recently amid concerns over the spread of COVID-19 and global economic slowdown, to suppress excessive forced sales of credit loan collateral stocks by securities companies, the obligation to maintain the credit loan collateral ratio was exempted from March 16 to September 15 this year. However, the collateral ratio standards applied after this measure are left to the discretion of securities companies. Nevertheless, if complaints are received regarding general disputes arising during forced sales, such as failure to fulfill prior notification obligations, the FSS will investigate the facts and respond with the review results.
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