Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
Foreign banks start helping virus-hit Korea
Citibank Korea CEO Park Jin-hei, left, and Standard Chartered Bank Korea CEO Park Jong-bok / Korea Times file
By Park Jae-hyuk
By Park Jae-hyuk
Citibank Korea and Standard Chartered (SC) Bank Korea announced various measures to help the underprivileged and small- and medium-sized enterprises (SMEs) here in the midst of the corona virus spread, following criticism over their apparent indifference towards the country in crisis.
In contrast with Korean banks that implemented immediate financial support for coronavirus-hit businesses, the overseas-headquartered banks have been criticized for their delayed response.
Given that Citibank and SC Bank respectively earned 295.6 billion won ($248 million) and 254.5 billion won net incomes here during the first three quarters of 2019, the two have faced mounting criticism for what many say is a failure to "give back."
Against this backdrop, Citibank Korea announced Monday it will extend loans to virus-hit SMEs at lower interest rates to assist them in this time of financial uncertainty.
The U.S.-headquartered bank's local subsidiary also donated face masks and hand sanitizers to disabled people and senior citizens to help prevent infection of the corona virus among vulnerable groups.
It also sent energy drinks to medical staff in Daegu and North Gyeongsang Province.
“As a responsible corporate citizen, we will make efforts to prevent the spread of COVID-19 and overcome the crisis, by supporting small merchants, exporters, importers and underprivileged people facing difficulties from the virus,” a Citibank Korea official said.
SC Bank Korea said Tuesday the company will take part in a voluntary donation campaign with its employees to help provide face masks, hand sanitizer and food for vulnerable groups and residents in Daegu and North Gyeongsang Province.
The U.K.-headquartered bank's local unit will give the money raised to the Community Chest of Korea.
It will also purchase and donate 50 million won worth of vouchers which can be used at traditional markets in Daegu and North Gyeongsang Province ― the regions taking the brunt of the virus outbreak.
“We have also offered various financial supports to SMEs facing difficulties due to the spread of COVID-19, in line with government policies,” a SC Bank Korea official said.