Banks to Disburse 1.4 Trillion KRW in Interest Refunds for Self-Employed and Small Business Owners

The banking sector has reportedly completed refunds amounting to approximately 1.4 trillion KRW through the interest refund program for self-employed individuals and small business owners.

Former Shinhan Financial Group Chairman Cho Yong-byoung has been selected as the final candidate for the next chairman of the Korea Federation of Banks. The photo was taken on the 16th at the Korea Federation of Banks building in Jung-gu, Seoul. Photo by Kang Jin-hyung aymsdream@

The Korea Federation of Banks announced on the 29th that the banking sector has disbursed 1.4179 trillion KRW in refunds for interest paid by individual business owners by the end of this month. This accounts for 94.3% of the total expected interest refund amount of 1.5035 trillion KRW.

Looking at the refund disbursement performance by major banks: ▲Kookmin Bank 274.69 billion KRW ▲Hana Bank 193.25 billion KRW ▲Shinhan Bank 182.52 billion KRW ▲Woori Bank 176.83 billion KRW ▲SC First Bank 9.94 billion KRW ▲Korea Citibank 5.551 billion KRW, among others.

The refund performance for interest paid on individual business loans during the first quarter of this year was 59.6 billion KRW. However, borrowers who received a refund for one year’s worth of interest in the first refund in early February were excluded from the second refund.

The refund disbursement for interest paid by individual business owners last year (first refund) amounted to 1.3583 trillion KRW. The Korea Federation of Banks stated, "Due to additional payment efforts by banks, the disclosed performance of 1.3455 trillion KRW announced at the end of February was exceeded."

Meanwhile, refunds for interest paid in the second quarter of this year will be implemented in July. The related performance is scheduled to be disclosed at the end of July.