Banking Sector to Announce 'Support Measures for Vulnerable Groups' in March... Financial and Telecom Debt Adjustment in June

Financial Authorities' Follow-up Plan on 'Livelihood and Win-Win Finance'
Kim Joo-hyun: "Interest Rate Reduction for Vulnerable Groups... Support for Recovery to Proceed Without Delay"

Choi Sang-mok, Deputy Prime Minister for Economic Affairs and Minister of Economy and Finance, is speaking about recent economic issues at the Emergency Economic Ministers' Meeting held on the 26th at the Government Seoul Office in Jongno-gu, Seoul. Photo by Jo Yong-jun jun21@

At the end of March, specific support targets and methods for vulnerable groups by the banking sector will be disclosed, and in June, a path will open to simultaneously adjust financial and telecommunications debts.

On the 26th, the Financial Services Commission, the Financial Supervisory Service, and related ministries announced the "Follow-up Action Plan for the Livelihood and Win-Win Finance Sector Livelihood Forum," which includes these details, at the Emergency Economic Ministers' Meeting. This plan concretizes the schedule for interest burden reduction measures for vulnerable groups such as small business owners and low-income earners mentioned at the "Livelihood Forum with the People" held on the 17th of last month. The banking sector proposed an interest refund plan worth 1.5 trillion won for about 1.88 million people. Additionally, the banking sector plans to announce support measures worth 600 billion won, including the Small Enterprise and Market Service's contribution plan and small business rent support measures, by the end of March.

A "Comprehensive Platform for Low-Income Finance," linking financial support with employment and welfare systems, will also be established and begin operation in June. To help restore credit and support the recovery of low-income earners and small business owners, the government will implement measures restricting the sharing and use of delinquency history information starting April 12. After a business agreement between the telecommunications industry and the Credit Recovery Committee, an integrated system to simultaneously adjust financial and telecommunications debts will operate from June. The Personal Debtor Protection Act aims to be enforced in October, with legislative notice, review by the Regulatory Reform Committee and the Ministry of Government Legislation, establishment of subordinate regulations, and incorporation into financial companies' internal rules to ensure smooth implementation.

In his opening remarks, Kim Joo-hyun, Chairman of the Financial Services Commission, said, "We will steadily promote measures to reduce interest burdens on small business owners, support credit recovery, implement the Personal Debtor Protection Act, and continuously support the recovery of vulnerable groups through combined financial and employment support."