"Switch from Secondary Finance to Banks"... FSC Holds Win-Win Finance Presentation

On the afternoon of the 20th, the Financial Supervisory Service (FSS) held a 'Coexistence Finance Presentation' at its headquarters in Yeouido, Seoul, sharing outstanding cases of coexistence finance in the financial sector and future directions.

First, Shinhan Bank refinanced 2.4 billion KRW (153 cases) of personal credit loans from Shinhan Savings Bank into low-interest bank loans, reducing the average loan interest rate by 4.28 percentage points. iM Bank (formerly Daegu Bank) refinanced 14.9 billion KRW (18 companies) of second-tier financial sector corporate loans for mid-sized and small businesses into low-interest bank loans. As a result, borrowers significantly reduced their interest expenses and saw improvements in their credit ratings.

Hana Bank additionally refunded about 1% of the interest on loan balances for individual business owners in the economically sensitive sectors of food service and retail. The total refund amount reached 10 billion KRW.

Additionally, the '2024 Inclusive and Coexistence Finance Awards Ceremony' was held during the event. Six financial institutions, including Industrial Bank of Korea, Busan Bank, Woori Bank, Gyeongnam Bank, and Shinhan Bank, along with nine individuals, received awards. The FSS announced that NongHyup Bank, having won consecutively from 2020 to 2022, was succeeded this year by the runner-up, Industrial Bank of Korea.

Kim Byung-chil, Deputy Governor of the FSS, stated, "So far, banks have provided consumers with a total benefit of 1.4 trillion KRW through various measures such as loan interest rate reductions, delinquency interest waivers, and fee exemptions up to September." He added, "Just as leading global financial firms have announced ESG (Environmental, Social, and Governance) policies with mid- to long-term directions, we hope Korean financial institutions will set priorities and values to promote inclusive and coexistence finance."