“Please expand various customized support for each industry.”
“Support for borrowers in a temporary liquidity crisis does not conflict with the principles of market economy”
“It is not desirable for the owner of the self-reliant will to take off the ventilator”
The Financial Supervisory Service Commissioner Lee Bok-hyeon announced on the 7th that the financial sector should play a leading role in inducing a soft landing ahead of the extension of the loan maturity and the end of the deferral of repayment for SMEs and small business owners affected by COVID-19 at the end of this month.
President Lee expressed this position at a meeting with representatives of the financial industry, including the president of the financial industry association, the representative of the Mutual Finance Federation, and the head of the bank held at the Bank Hall on the same day.
“If small and medium-sized businesses and small business owners who are temporarily facing difficulties become unable to repay due to lack of liquidity, it will not only put a great burden on the Korean economy, but also have a negative impact on the soundness of financial institutions,” said President Lee.
“In this regard, the active role and cooperation of the financial sector is urgently needed,” he said.
President Lee Bok-hyeon said, “I know that the government is pushing for support measures such as the Startup Fund, and the financial sector is also preparing its own soft landing plan.” he emphasized.
President Lee said, “I ask that you expand various customized support tailored to the characteristics of each business area.”
He thanked the banks for the recent announcement of support measures such as lowering the interest rate on high-interest loans or extending the loan maturity of borrowers who are experiencing temporary difficulties in order to alleviate the financial burden on small business owners and asked them to continue.
He said, “The soft landing of borrowers from SMEs and small business owners is a very important task in terms of the soundness of the financial sector as well as the national economy. I don’t think it conflicts with the principle,” he added.
After the meeting, when reporters asked regarding his personal position on whether to extend the maturity extension, President Lee said, “As the head of the Financial Supervisory Service, my opinion is that, in a situation where there are many people with the will of self-reliance, who want to pay interest with a strong will even if they are overdue, their “I have a strong opinion that it is not advisable to take off the oxygen respirator,” he said.
As for whether or not he had discussed further extension of maturity extension and repayment deferral measures that day, he said, “The basic position of the financial authorities is the same as it has been announced.” Factors such as rapid interest rate hikes and raw material price hikes were not taken into account,” he explained.
He added, “In a situation where it is difficult for each borrower to bear the external shock, the basic issue of whether it is appropriate to hand over all responsibilities to the individual is a situation in the discussion. Larger SMEs and corporations are not financially supported even though the damage from external shocks is greater.”
In addition, President Lee emphasized, “The financial authorities will do their best to manage the soundness of financial institutions regardless of measures such as termination of maturity extension in relation to the termination of financial support for Corona.”
/yunhap news
