Financial groups expand assistance for tariff-hit small businesses
Financial Services Commission Chairman Kim Byoung-hwan, front third from left, speaks during a meeting with heads of financial groups and banks at the Seoul Government Complex in Gwanghwamun, Seoul, Monday. Yonhap
The country’s leading financial groups are extending assistance amounting to trillions of won to help small and medium-sized enterprises (SMEs) and self-employed, affected by the Trump administration’s tariffs, market watchers said Tuesday.
The measure followed a meeting presided over by Financial Services Commission Chairman Kim Byoung-hwan on Monday. Also in attendance was Financial Supervisory Service Gov. Lee Bok-hyun, along with the heads of the country’s top five financial holding groups — KB Kookmin, Shinhan, Hana, Woori and NH NongHyup.
Read More
- Financial watchdog chief calls for measures for market stability, financial prudence
- Educational expenses rise at steepest pace since global financial crisis
- Financial cooperation ambassador reassures Japanese investors of strength of Korean economy
- NH Financial, IBK embrace whistleblower system to curb employee misconduct
Shinhan Financial Group pledged to provide over 10.5 trillion won ($7.1 billion) to SMEs and small businesses, including exporters with a U.S. business presence.
Of them 10.5 trillion won, 9.4 trillion won is earmarked for lowering interest rates for corporate borrowers including Korean exporters. It will also provide 500 billion won to the Korea Federation of Credit Guarantee Foundations to help small businesses take out new loans.
Shinhan will give about 600 billion won to the Korea Credit Guarantee Fund (KCGF) for similar purposes.
KB Financial Group will operate a program whereby 8 trillion won will be used to lower interest burdens for corporate borrowers.
About 5 trillion won will be for exporters, while the remaining 3 trillion won will be for SMEs and self-employed.
Hana Financial Group plans to provide a 6.3 trillion won emergency support for SMEs and small businesses. Its existing long-term borrowers will be able to apply for lower interest rates. New borrowers will also qualify for low interest rate loans.
Hana will sign an agreement with KCGF to assist auto parts manufacturers this month. More industry-specific measures will be outlined soon.
Woori Financial Group pledged a total of 10.2 trillion won in financial assitance package, late Tuesday. It came a day after a meeting organized by the group's task force established to bolster preparedness against the Trump tariff developments on Monday.
Woori Chairman Yim Jon-yong presided over the meeting and called for swift measures to address the needs of exporters and importers heavily impacted by tariff shocks.
The meeting was an extension of the previous one held Friday when the group outlined a strategy whereby its bank subsidiary, Woori Bank, will strengthen risk management.
“We will fortify emergency response management and provide timely aid to businesses in need of short-term funding as well as other challenges,” Yim said during the meeting.