Go Seung-beom "One More Extension for Small Business Owners' Maturity Extension and Repayment Deferral" (Comprehensive)

Financial Services Commission and Banking Sector to Actively Pursue 6-Month Extension Plan

Governor Ko Seung-beom of the Financial Services Commission and other attendees are taking a commemorative photo on the 28th at the Bankers Club of the Korea Federation of Banks in Jung-gu, Seoul, before the "Financial Services Commission Chairman's Invitation Bank Presidents Meeting." Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Song Hwajeong] The maturity extension and repayment deferral measures for small business owners will be extended once again. The Financial Services Commission and the banking sector have reached a consensus on this and agreed to actively cooperate in preparing detailed plans.

At the meeting with bank presidents invited by the Financial Services Commission held at the Bankers' Hall on the 28th, Financial Services Commission Chairman Ko Seung-beom requested the banking sector to extend the maturity extension and repayment deferral measures once more, and the banking sector agreed to actively cooperate with the extension of the measures.

Chairman Ko said, "The financial sector has implemented maturity extension and repayment deferral measures for small and medium-sized enterprises (SMEs) and self-employed individuals affected by COVID-19 over the past two years, but due to the Omicron variant and other COVID-19 variant pandemics, the business conditions of SMEs and the self-employed have still not recovered to pre-COVID-19 levels." He added, "Accordingly, when the supplementary budget bill was passed by the National Assembly, the Assembly presented an opinion urging an additional extension of the maturity extension and repayment deferral measures as an attached opinion." He further explained, "The government empathizes with the difficulties currently faced by the self-employed and, respecting the National Assembly's opinion based on bipartisan agreement, intends to actively consult with the financial sector to extend the maturity extension and repayment deferral measures once more."

The Financial Services Commission and the banking sector decided to extend not only the loan maturity extensions but also the principal and interest repayment deferrals collectively, and detailed plans will be prepared through consultations with the entire financial sector. The extension period will be actively pursued as a six-month extension, as was done in the previous three extensions.

Additionally, efforts will be made to prevent self-employed individuals from being exposed to temporary repayment shocks while also addressing the accumulated debt problems of self-employed borrowers. Based on the micro-analysis results of the management and financial conditions of self-employed individuals currently conducted by financial authorities, the banking sector will also cooperate in preparing customized support plans for different groups of self-employed borrowers.

The maturity extension and repayment deferral measures for small business loans were implemented in April 2020 to support small business owners struggling with management difficulties due to COVID-19 and have since been extended three times in six-month increments. With the Omicron spread and political requests ahead of the scheduled expiration next month, the measures will be extended once again. On the 21st, the National Assembly approved the supplementary budget and presented an attached opinion stating, "The government shall promptly prepare and implement a plan to further extend the maturity extension and repayment deferral measures across the entire financial sector."