Financial Services Commission Risk Response Team Meeting... "Continued COVID-19 Financial Support for Vulnerable Sectors"

Extension of Application Deadline for the Industrial Stability Fund
Total Financial Sector Loans and Guarantees Support: 2.866 Million Cases, 307.8 Trillion KRW

[Asia Economy Reporter Park Sun-mi] On the 9th, the Financial Services Commission held the '36th Financial Risk Response Team Meeting' chaired by Vice Chairman Do Kyu-sang, focusing on checking the implementation status of the livelihood and financial stability package program, the progress of the small business support program, funding support status and difficulties of small and medium-sized enterprises (SMEs) and mid-sized companies.

In his opening remarks on the 9th, Vice Chairman Do Kyu-sang said, "If a global interest rate hike and synchronization of domestic interest rates occur, risks such as increased corporate financing costs and increased interest burdens on household loans may arise. Therefore, we will closely monitor financial market risk factors by sector and prepare to respond promptly when necessary."

He continued, "As uncertainties caused by COVID-19 persist, we plan to continue financial support for vulnerable sectors such as small business owners and SMEs," adding, "Last week, all financial sectors decided to extend the maturity extension and repayment deferral measures for small business owners and SMEs, which were scheduled to end at the end of this month, by an additional six months until the end of September. The financial authorities also plan to improve evaluation indicators so that efforts to respond to COVID-19 are reflected in the evaluations of policy financial institutions and banks to support the efforts of financial institutions."

He also added, "We plan to extend the application deadline for the Period Industry Stabilization Fund, which was due at the end of April this year, and review whether there are ways for the fund to help companies rebound after COVID-19."

Meanwhile, according to the major financial support performance of the livelihood and financial stability package program disclosed by the FSC, 14.8 trillion won has been supported so far through the 1st small business support program, and 5.1 trillion won has been supported through the 2nd small business support program. Through the SME and mid-sized company funding support program, 37.2 trillion won was supported, and 19.4 trillion won was supported to stabilize the corporate bond and short-term money markets.

As of the 5th, the total loan and guarantee support performance of the financial sector was 2,866,000 cases, with 307.8 trillion won in funds supported. By industry, financial support was provided in the order of restaurants (552,000 cases), retail (448,000 cases), and wholesale (343,000 cases). By type, new loans and guarantees totaled 1,864,000 cases and 125.6 trillion won executed, and maturity extensions for existing loans and guarantees totaled 1,002,000 cases and 182.2 trillion won executed. By institution, support was provided through policy financial institutions with 1,492,000 cases and 153.4 trillion won, and through commercial banks with 1,337,000 cases and 153.2 trillion won.