Banks Refund 1.4 Trillion Won in Interest to Self-Employed and Small Business Owners

The Korea Federation of Banks announced on the 29th that the banking sector has disbursed a total of 1.4544 trillion KRW, which is 96.7% of the total expected interest refund amount (1.5035 trillion KRW), as refunds for interest paid by individual business owners by the end of July.

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@

First, the refund performance for interest on individual business loans paid during the second quarter (the 3rd refund) amounted to 34.79 billion KRW and was paid by the end of July. Borrowers who received refunds for one year's worth of paid interest (the maximum interest refund period) during the previous 1st refund (conducted in February) and 2nd refund (conducted in April) were excluded from the 3rd refund target.

Additionally, the cumulative disbursement performance related to the 1st refund (interest paid during last year) and the 2nd refund (interest paid during the first quarter) totaled 1.4196 trillion KRW, which increased by 1.7 billion KRW compared to the disclosed performance (1.4179 trillion KRW) announced at the end of April due to additional payment efforts by banks.

Banks have paid the refund amounts to borrowers who were unable to receive the interest refund deposits due to the absence of automatic principal and interest payment accounts or termination of bank transactions, after verifying their accounts.

Meanwhile, refunds for interest paid in the third quarter will be implemented in October, and the related performance is expected to be disclosed at the end of October.