Eun Sung-soo, Financial Services Commission Chairman, On-site Inspection of Banks Supporting COVID-19 Damage Assistance

"Please continue to pay attention to ensure uninterrupted support"

[Asia Economy Reporter Park Sun-mi] On the 20th, Eun Sung-soo, Chairman of the Financial Services Commission, visited major commercial bank branches to encourage the smooth implementation of the newly reorganized and newly established second financial support program for small business owners and to inspect and listen to the difficulties faced by small business owners and bank branches.

Chairman Eun visited NongHyup Bank Dongdaemun Branch, Woori Bank Namdaemun Branch, and Industrial Bank of Korea Gongdeok Branch from 1:30 PM to 4 PM that day, and said, “I thank the banking sector, which decided to operate by lowering interest rates as much as possible to share the difficulties of small business owners, and especially the frontline staff for their hard work.”

Since the 18th, the banking sector has lowered the maximum interest rate for the second loan for small business owners from the previous 4.99% to 3.99%, a 1 percentage point reduction. In particular, Kookmin, Shinhan, Woori, Hana, NongHyup, and Industrial Bank of Korea have lowered it by an additional 1 percentage point and are operating at interest rates in the 2% range.

Chairman Eun said, “We will support the banking sector and branch staff’s difficulties during the support process with prompt measures and institutional improvements,” and added, “Although quarantine measures for some multi-use facilities have been conditionally eased, social distancing has been extended for two weeks, so please actively comply with the quarantine guidelines.”

He continued, “Since some small business owners who opened in 2020 and those subject to local government business restriction measures have not yet completed receiving the support fund, please continue to guide the special support program for small business owners renting in restricted business sectors and ensure that support is provided without any issues.”

He also emphasized that elderly and vulnerable groups who have difficulty using the internet and smartphones are visiting branches to receive the reorganized and newly established second financial support for small business owners, and urged, “At the frontline counters, please provide easier and thorough explanations about the loan program’s interest rates, maturity, and necessary documents such as the confirmation of the support fund issuance.”

Chairman Eun checked with waiting customers at the branches whether there were any difficulties or inconveniences in preparing documents, and inspected with counter staff whether the special loan procedures for small business owners in restricted business sectors are being carried out promptly. Furthermore, he reiterated, “Since the exemplary guidelines for exemption from liability for banks’ innovative financial tasks were established last October, please actively support small business owners for whom the rapid supply of funds is crucial.”

The Financial Services Commission stated that it will continue to inspect and listen to the difficulties of small business owners and frontline bank branches through weekly meetings of the Economic Central Disaster and Safety Countermeasures Headquarters’ Financial Risk Response Team. It also announced that it plans to faithfully implement the '175 trillion KRW + α Livelihood and Stability Program' to support small business owners and companies struggling due to COVID-19, including the second financial support program for small business owners.