Financial Services Commission Chairman: "Considering Expansion of Low-Interest Refinancing Program to Secondary Financial Institutions"

"Thank You for the Prompt Support Measures from the Banking Sector"
"Real Estate PF, Efforts for an Orderly Soft Landing"

As the banking sector announced a livelihood support plan worth over 2 trillion won plus alpha, Financial Services Commission Chairman Kim Ju-hyun stated on the 21st that they are considering expanding the low-interest refinancing program to include borrowers in the secondary financial sector.

Chairman Kim met with reporters after the 'Banking Sector Livelihood Finance Support Meeting' held at the Bankers' Hall in Jung-gu, Seoul, and regarding the issue of "fairness with borrowers using secondary financial institutions such as savings banks," he said, "It is true that the secondary financial sector is in a very difficult situation, but it is difficult in the same way as the banking sector." He added, "There is a program by the Korea Credit Guarantee Fund that converts high-interest loans over 7% into low-interest loans, and we are considering expanding the scope and benefits of this program." He further stated, "If the budget bill passes, we will discuss with the Ministry of SMEs and Startups to utilize about 300 billion won allocated for this purpose."

Regarding the largest-ever livelihood finance support plan announced by the banking sector, he said, "There were concerns that negotiations would be delayed during the process of banks voluntarily preparing the plan, but they prepared the plan very quickly," and expressed gratitude for the banks' maximum support. He added, "When combined with various programs promoted by the government, although it may not be 100% satisfactory, the overall economy is expected to improve somewhat next year."

On the issue of non-performing real estate project financing (PF), he reiterated the importance of a "orderly soft landing." Chairman Kim said, "If factors causing market instability arise and psychological uncertainty begins, it becomes difficult to make rational decisions," and evaluated, "As we have been doing since last year, we are supporting normal projects and resolving problematic ones." He continued, "Since this is a transitional period, the pace may not be fast, but the basic stance is a soft landing and orderly resolution," emphasizing, "With the cooperation of market participants, a soft landing can be achieved."

On the 21st, Kim Ju-hyun, Chairman of the Financial Services Commission (left), and Lee Bok-hyun, Governor of the Financial Supervisory Service, are having a conversation at the Banking Sector Livelihood Financial Support Meeting held at the Korea Federation of Banks in Jung-gu, Seoul. Photo by Jo Yong-jun jun21@