Press Releases - Financial Services Commission

Press Releases

Period: start
~
end

1month 3month Reset

Requirement

Feb 22, 2021

FSC Introduces Guidelines on MyData Services and Establishes MyData Support Center

The FSC introduced guidelines on MyData services on February 22, which contain details about the consumers data privacy rights, scope of data transfers, operational procedures, obligations for service providers and so on, as MyData businesses will begin to offer their services using standardized API beginning on August 4, 2021. In addition, MyData support center has been set up at the Korea Credit Information Services to facilitate a seamless operation for both service providers and consumers. The center will provide support for quick resolution of conflicts and consumer complaints through MyData web portal. Guideline Details I. Scope of Data Provision The guidelines specify the types of consumer credit and financial data that can be provided through MyData services from a range of financial sectors, such as credit finance and financial investment businesses, insurance businesses, credit card companies, electronic financial services, etc. A further expansion on the types of consumer data available for MyData will be reviewed and decided in the future. II. Protection of Consumer Rights The guidelines contain measures to ensure that consumers are giving consent to data transfer with sufficient awareness of their data privacy rights through the use of easy-to-understand language and visual contents while allowing freedom of consent, denial, withdrawal, etc. To strengthen data protection, MyData businesses will be required to make their service cancellation process easy and completely remove consumer credit data from their platform when cancellation occurs. MyData firms will be prohibited from offering excessive rewards as sales pitch to prevent excessive competition in the industry. For the purpose of data security management, MyData firms will be subject a set of specific data security standards and the suitability and vulnerability tests. III. Data Transfer Process First, data subject files a data transfer request at a financial institution after choosing specific ty
Attachment 1
Feb 22, 2021

FSC to Strengthen Liquidity Management of Specialized Credit Finance Companies

The FSC announced a set of measures aimed at strengthening the liquidity management of specialized credit finance companies on February 22. The measures include (a) establishing best practice guidelines, (b) strengthening disclosure requirements and (c) gradually reducing the maximum leverage on credit finance (non-credit card) businesses. Background Specialized credit finance businesses are lenders without deposit-taking functions.They usually finance their business through borrowings or the issuance of corporate bonds and asset-backed securities (ABS). In particular, their heavy reliance on debt finance, about 73.9 percent of their financing,creates a problem of risk transfer to financial institutions holding their corporate bonds, especially if credit finance companies face solvency problems. In this regard, there have been concerns about credit finance companies turning into a conduit of systemic risk in times of an unexpected economic shock such as COVID-19. Therefore, liquidity problems of credit finance businesses can pose a risk not only to the borrowers with mid-to-low credit backgrounds but also to the real economy as they may cause a drop in consumption and corporate facility investment. Key Measures I. Best Practice Guidelines on Liquidity Management The best practice guidelines on specialized credit finance companies liquidity management will be introduced for implementation beginning in April this year. - (Target) Bond issuing credit finance companies and those with more than KRW100 billion in total assets will be subject to the new guidelines. - (Role of Board and Management) Board of directors should oversee the establishment and operation of liquidity management strategies and the company management should prepare specific management process and criteria and regularly report to its board members. - (Liquidity Risk Indicators) Major liquidity risk indicators include corporate bond maturity distribution, liquid asset ratio, short-term debt ratio, etc.
Attachment 1
Feb 19, 2021

FSC Chairman Holds Meeting with Heads of State-backed Financial Institutions

FSC Chairman Eun Sung-soo held a meeting with heads of state-backed financial institutions on February 19 and discussed maintaining the loan deferment program for small merchants and SMEs for six more months and promoting K-New Deal initiatives and green financing. Key Issues A. Maintain Efforts to Overcome Pandemic-induced Crisis Chairman Eun and the heads of state-backed financial institutions agreed on the need to extend the availability of loan deferment of principal and interest payments for small merchants and SMEs for six more months. The heads of state-backed financial institutions raised the same voice and showed their willingness in providing additional liquidity, interest rate cuts and business consulting to help businesses in need. B. Promote K-New Deal and Financial Innovation While emphasizing the importance of implementing the K-New Deal initiative and cultivating innovative firms, Chairman Eun talked about the FSCs plan to draw up a special lending support guideline for businesses through which companies can get financing with minimum eligibility criteria. In addition, Chairman Eun urged close cooperation in the operation of New Deal funds. C. Promote Green Financing Chairman Eun discussed the importance of information sharing and minimizing overlaps in functions between different institutions. To promote a synergetic effect and cooperation, the FSC will set up a consultative body on green finance made up of state-backed financial institutions this year. * Please refer to the attached PDF for details.
Attachment 1
Feb 18, 2021

FSC Designates Two More Financial Solutions as 'Innovative Financial Services'

The FSC added two more financial solutions to the financial regulatory sandbox program on February 18, bringing the total number of innovative financial services to 139 since the sandbox program was launched on April 1, 2019. The FSC also made a decision to extend the designation and regulatory exemption period on five other previously selected innovative financial services. Overview of Newly Added Innovative Financial Services 1. A small-sum deferred payment service that allows consumers to make a payment on the remaining portion of the total charged amount after first using their online reward points based on a pre-determined individual deferred payment limit calculated according to the Alternative Credit Scoring System (Naver Financial, expected in Apr. 2021) 2. An online stock gift card service that allows consumers to purchase stock gift cards on easy-to-access e-commerce platforms and use them for trading in domestic and overseas securities markets (eBest Investment Securities, expected in Aug. 2021) * Please refer to the attachdd PDF for details.
Attachment 1
Feb 18, 2021

FSC Announces Rules Change to Improve the Recovery and Resolution Regimes of SIFIs

The FSC announced a revision proposal for the Enforcement Decree of the Act on the Structural Improvement of the Financial Industry on February 18, which will be put up for public notice from February 19 to April 1, 2021. The revision proposal to the Enforcement Decree is a follow-up to the revised Act passed at the National Assembly in December last year which is aimed at strengthening the recovery and resolution regimes of the systemically important financial institutions (SIFIs) as recommended by the Financial Stability Board. The revisions are expected to help improve the preparedness and responsiveness of SIFIs in their crisis management. Key Revisions (Selection of SIFIs) The FSC should select SIFIs every year after considering their function, scale, ties to other financial institutions and influence on the domestic financial markets. In this regard, the selection of SIFIs will be confined to banks and bank holding companies. (Recovery and Resolution Plans) SIFIs will be required to prepare and submit their own recovery plans to the Financial Supervisory Service within three months from the day of being designated as a SIFI. The FSS will then immediately pass on their recovery plans to the Korea Deposit Insurance Corporation (KDIC) and be required to evaluate the recovery plans and file evaluation reports to the FSC within three months. At the same time, the KDIC will be required to draw up resolution plans and submit them to the FSC within six months. A deliberative body within the FSC will then decide on the final approval of both recovery and resolution plans within two months. In this regard, recovery plans should have been approved at a board meeting prior to being submitted and contain specific details about the role and responsibilities of board members and executives, major business areas, standards of determining crisis situations, specific crisis management measures, etc. The deliberative body within the FSC will be made up of an FSC commissioner (FS
Attachment 1
Feb 17, 2021

FSC Proposes Additional Rules Change on Virtual Asset Service Providers

The FSC announced a revision proposal for the supervisory regulation on virtual assets on February 17 as the revised Act on Reporting and Using Specified Financial Transaction Information is scheduled to go into effect on March 25, 2021.The revision proposal will be put up for public notice from February 18 until March 2 and will take effect from March 25. Key Revisions (On Virtual Assets) The revised supervisory regulation contains the following details on pricing, exemption for real-name accounts, requirements for virtual asset service providers (VASPs), etc. - Pricing of virtual assets in fiat money for the purpose of sales, exchange or transfer will be determined by the price displayed by VASPs at the time of sales, exchange or transfer. - VASPs whose service activities entail no exchange of virtual assets with fiat money will be exempted from the real-name account rule that requires them to maintain real-name accounts with financial institutions. - New business registration, change and renewal forms have been established for VASPs. - A VASP will be allowed to serve as a broker between its own customer and another VASPs client only if the other party is a qualified AML compliant VASP and that verifying information on the other partys client is possible. - An adjustment has been made to the suspicious transaction reporting form to include virtual assets. (On STR Requirement) The revised supervisory regulation stipulates that financial institutions should file suspicious transaction reports to the KoFIU within three business days from the time of detecting suspicious financial transactions for money laundering by their AML officers. * Please refer to the attached PDF for details.
Attachment 1
Feb 16, 2021

FSC Chairman Discusses Extending Loan Payment Deferment with Heads of Financial Holding Groups

FSC Chairman Eun Sung-soo held talks with the heads of the five financial holding groups on February 16 and discussed an extension of the availability of loan deferment of principal and interest payments currently set to expire at the end of March this year. In this regard, the participants agreed on the need to extend the availability of payment deferment for small merchants and SMEs for six more months considering the current COVID-19 situation, etc. Chairman Eun emphasized the importance of maintaining steady support for the real economy and stated that the financial authorities will work on an orderly rollback of the temporary support and deregulatory measures when conditions are permissible. During the meeting, Chairman Eun also talked about the leading role of finance in a post-pandemic era and shared key financial policy agendas for this year. *Please refer to the attached PDF for details.
Attachment 1
Feb 15, 2021

3rd Korea Fintech Week to be Held in May

The FSC announced its plans to hold the 2021 Korea Fintech Week from May 26 to 28 under the theme of fintech and sustainable financial innovation. The third annual global fintech expo will kick off its first day at Conrad Seoul with live streaming of onsite activities available online and then move on to exclusively virtual events for the second and third days. The offline to online (O2O) availability of diverse promotional, vocational, educational and networking programs and opportunities will help boost awareness on fintechs and accelerate financial innovation. Key Features (User Experience) More dynamic and engaging programs will be prepared for online visitors with real-time QAs and communication made possible. (Job Fair) Fintech job talks will be held to offer real-time QA opportunities to fintech job seekers. (Investment) More fundraising opportunities will be available for fintechs through IR and venture capital consulting programs. (Education) Online educational programs will be offered with certificates Registration Schedule Preliminary application for participating firms will be open from the third week of March and pre-registration will be available from the first week of May from the Korea Fintech Week website (www.fintechweek.or.kr/2021). Viewing is free for students and the general public. In November this year, the FSC plans to hold an additional global fintech expo offline if the coronavirus conditions are permissible. For more information, please contact the Fintech Center Korea via email at fintechweek@fintech.or.kr or by phone at +82.2.6375.1541. * Please refer to the attached PDF for details.
Attachment 1
Feb 15, 2021

FSC to Strengthen Inclusive Finance Measures

The FSC announced its plans to strengthen inclusive finance measures for this year on February 15. Key Measures A. Reduce Interest Payment Burdens on Lower Income Households (1) Work to improve the microfinancing options and encourage the private sector lenders to make more microloan opportunities available to low credit borrowers - Consider a wider reduction in interest rates for sunshine loan products and work to diversify microfinancing channels through different financial sectors - Provide incentives to financial institutions that have outstanding records in the provision of microloan products (2) Strengthen measures to root out illegal predatory lending and work to support victims B. Strengthen Targeted Support for Vulnerable Groups (1) Introduce a government-backed ultra-long term (40-year) home mortgage product for young adults and expand support to lower their rent costs (2) Diversify options for receiving reverse home mortgage payments and promote other financial products for those in and/or preparing for retirement (3) Allow a payment deferral of up to two years for those hit by COVID-19 before their debt adjustment payment obligations take effect (4) Work for the enactment of the new consumer credit bill (to be submitted to the National Assembly in H1 2021) to establish a fair system of debt adjustment between creditors and individual debtors C. Ensure Effective Implementation of the Financial Consumer Protection Act (1) Operate a taskforce to ensure a smooth implementation of the new Financial Consumer Protection Act (2) Set up an online bulletin board to announce a schedule of public information sessions and work to strengthen public awareness about the expected changes in rules * Please refer to the attached PDF for details.
Attachment 1
Feb 10, 2021

Household Loans, January 2021

The outstanding balance of household loansin all financial sectors rose KRW10.1 trillion from the previous month at the end of January 2021 (up 8.5% y-o-y). The household loan balance increased KRW7.6 trillion in the banking sector and KRW2.5 trillion in the non-banking sector. By type, mortgage loans rose KRW5.8 trillion in January, declining KRW0.9 trillion from the previous month (up KRW6.7 trillion y-o-y). In the banking sector, mortgage loans grew KRW5.0 trillion while mortgage lending by non-banks increased KRW0.8 trillion from the previous month. Other types of loans rose KRW4.3 trillion as demand for credit loans remained high. The financial authorities will closely monitor trends in credit loans while ensuring a seamless provision of lending support to businesses hit by social distancing measures. In the first quarter, the authorities will come up with a more effective household debt management plan focusing on individual DSR. * Please refer to the attached PDF for details.
Attachment 1
Feb 09, 2021

Digital Finance Meeting Discusses Ways to Improve Rules for Fintechs and Big Techs

Vice Chairman Doh Kyu-sang held the 6th consultative body meeting on digital finance via teleconference on February 9 to discuss ways to improve rules for both fintechs and big techs and to examine areas for further improvements in the financial regulatory sandbox program. The following is a summary of Vice Chairman Dohs remarks. (Rules on Fintechs and Big Techs) Since October last year, the FSC has held talks with both fintechs and big techs on ten different occasions. Through these meetings, industry officials have suggested a total of seventy-four areas where regulatory reforms are needed. On fifty-two of them, the FSC will immediate take actions to improve the rules. On eleven others that are considered as mid- to long-term projects and require coordination with other ministries or further considerations for their impact on financial consumers, the FSC will continue to seek ways to make improvements. On the remaining eleven areas where it is deemed to be difficult to seek immediate change at the moment, the authorities will continue to closely monitor the trends to make improvements when conditions become permissible. On regulatory reforms to promote fintech innovation, the FSC will pursue the following policies. First, the FSC will work to create an environment where new digital businesses can be quickly launched and flourish. As many fintechs and platform service providers have requested, the authorities will work to provide strong support for launching new and innovative financial services through platforms. To this end, the FSC will ensure the launch of new innovative financial services through the regulatory sandbox program while working for a prompt enactment of the relevant amendments to the Electronic Financial Transactions Act. To build a strong foundation for the MyData industry, the FSC will promptly work to provide medium- and small-sized fintechs with support for their API data standardization and build a one-stop integrated MyData authentication sy
Attachment 1
Feb 08, 2021

FSC to Boost Support for Innovative Firms and Strengthen ESG Standards

The FSC held a financial development review committee meeting on February 4 and announced the direction of key policy areas and initiatives for this year including the government-wide support program to nurture more than one thousand innovative businesses and improving rules to strengthen ESG standards. Key Tasks A. Maintain Financial Support to Overcome COVID-19 (1) Ensure an effective implementation of the KRW175 trillion-plus financial support programs for businesses - Help relieve financial burdens of small merchants especially those hit by social gathering restrictions through a reduction in guarantee fees, etc. - Extend the operation of the working capital support program for suppliers and subcontractors in the key industries for three more monthsand extend the application deadline of the key industry stabilization fund (2) Create an on-site inspection and support team to closely communicate with small merchants and businesses on the ground to help address their needs - Introduce a measure to temporarily allow a deferral of business insolvency proceedings for small merchants undergoing a business closure with no overdue loan payments from February 15 to September 30, 2021 and require no repayment until the maturity date B. Manage Potential Risks Arising from the Pandemic Response (1) Work on long-term management of household debt to prevent it from over-burdening the economy - Prepare household debt management measures in the first quarter to promote lending based on individual borrowers debt service capacities and strengthen management over excessive levels of unsecured lending - Strengthen financing support for young adults and first-time homebuyers (2) Establish a corporate debt management system and pursue a dual-track management according to the different needs of businesses - Develop a database platform that tracks financial exposures of businesses in different industries - Provide adequate liquidity to those experiencing a temporary liquidity shortage t
Attachment 1
Feb 08, 2021

FSC Selects Another Fintech as Designated Agent to Provide Financial Services

The FSC selected Minds Lab as a designated fintech to provide financial services on behalf of Hyundai Marine Fire Insurance on February 5. Minds Lab will provide a one-stop automated loan processing service using artificial intelligence (AI) and voice recognition technologies. It will help reduce costs and save time while improving service standards. The FSC has made thirty-four such designations so far since May 2018. Application for the next round will be open from February 15 to April 30, 2021, with the results expected to be announced in July this year. * Please refer to the attached PDF for details.
Attachment 1
Feb 05, 2021

Rules Change Announced for Insurance Businesses Specializing in Small-sum and Short-term Policies

The FSC announced the revisions to the Enforcement Decree of the Insurance Business Act on February 4, setting entry requirements for the establishment of insurance businesses specializing in small-sum, short-term policies and introducing measures to improve the soundness of the insurance industry. The revisions will be put up for public notice for forty days until March 17, 2021. Key Revisions (Small-sum Shor-term Insurance Policies) The minimum capital requirement for setting up an insurance business specializing in small-sum, short-term insurance policies will be set at KRW2 billion. Small-sum, short-term insurance coverages will be allowed in all insurance coverage areas where applicable with a coverage term of one year, premiums of up to KRW50 million and the insurers annual gross premium revenues up to KRW50 billion. (Requirement for External Evaluation on Policy Reserves) Insurance businesses with total assets of KRW1 trillion or more will be required to have external actuaries approve the appropriateness of their policy reserves. This requirement will also be applied to the insurers with less than KRW1 trillion in total assets but whose policy coverage types are considered as essential for them to ensure the payout capabilities. The external actuaries will be entitled to a right to request relevant information from insurance companies. To guarantee impartiality, external evaluations from the same institution will not be allowed for four consecutive years. (Rules on Subsidiaries) The revisions will clearly indicate that insurers will be permitted to own MyData and health care-related businesses as subsidiaries. Expectation The authorities expect that the revisions will help promote the development of diverse types of small-sum, short-term insurance products for consumers according to their individual lifestyle, improve the soundness and competitiveness of insurance businesses and encourage insurers to boost investment and cooperation in new business areas, su
Attachment 1
Feb 04, 2021

New Deal Funds Worth KRW200 Billion Agreed for Future Car and Industrial Digitalization

FSC Chairman Eun Sung-soo visited Hyundai EV Stationin Seoul on February 4 and delivered congratulatory remarks at an MOU signing event for the promotion of investment cooperation in the areas of future car and industrial digitalization. MOU on Investment Cooperation The MOU highlights an agreement toward a mutual cooperation between the relevant industry entities, financial institutions and the New Deal fund operators (KDB and Korea Growth Investment Corp.) in creating KRW200 billion worth of feeder funds to be invested in the areas of future car and industrial digitalization. To this end, Hyundai Motor Group, the Korea Evaluation Institute of Industrial Technology (KEIT) and the Korea Institute for Advancement of Technology (KIAT) will collectively invest a total of KRW90 billion in New Deal funds in 2021. Over the next five years, the financial institutions will also make matching investments worth KRW1.1 trillion in New Deal funds. Summary of Chairmans Remarks Since the government first announced its plans to create the New Deal fund worth KRW20 trillion in September last year, a master fund was created on January 28 with fiscal investment in the amount of KRW510 billion. In January, fund managers submitted their applications with proposals in the amount of KRW9.7 trillion, which is well over three times the initial investment goal of KRW3 trillion for this year. Their proposals showed an appropriate distribution across all New Deal sectors and demonstrate the significance of digital and green industries in a post-pandemic era. The MOU signed today on investment cooperation between the relevant industry and financial officials is thus significant for the following reasons. First, in order to speed up the creation of New Deal funds, matching investments from the private sector are needed. With the MOU in place, we can expect to see a more speedy creation of feeder funds in the areas of future car and industrial digitalization. Second, in order to generate tangibl
Attachment 1
Feb 04, 2021

FSC Holds 1st Taskforce Meeting to Promote Role of Insurers in Health Care-related Services

The FSC held the first taskforce meeting on promoting the role of insurance companies in providing health care-related services with the relevant ministry and industry officials on February 4. At the meeting, officials discussed major health care industry trends in overseas markets and the domestic health care market environment for insurance companies. To boost the effectiveness in operating the taskforce, the FSC will separately operate an advisory group and a working group to draw up and search for policy tasks. While working to accelerate a data convergence between the health care and financial industries, the taskforce will explore diverse areas to make improvements, such as expanding the use of digital health devices for insurance companies. * Please refer to the attached PDF for details.
Attachment 1
Feb 03, 2021

FSC Announces Decision on Short-selling Ban

FSC Chairman Eun Sung-soo held a press briefing on February 3 and announced the decision to extend the short-selling ban until May 2, 2021 and to allow a partial resumption of short-selling from May 3 on KOSPI 200 and KOSDAQ 150 stocks. Summary of Chairmans Remarks (FSCs Decision) The FSC has decided to extend the current short-selling ban until May 2 this year and allow a partial resumption from May 3 on KOSPI 200 and KOSDAQ 150 stocks. The partial resumption is intended to minimize the impact on markets, given these stocks have large market caps and liquidity so that the resumption of short-selling would have limited impact on stock prices. Meanwhile, the short-selling ban will remain on the rest of stocks (2,037 stock items) with further decisions on the resumption of short-selling on these stocks to be made later based on market conditions. The resumption date of May 3 has been decided to give the Korea Exchange (KRX) some time for system development and testing. With the revised Financial Investment Services and Capital Markets Act scheduled to go into effect on April 6 this year, with stronger penalty rules for illegal short-selling activities, there will be no issue of a legislative gap. Today, the FSC commissioners raised the same voice on the need to improve the short-selling system as there are investor demands for more transparency and fairness in the short-selling system. (Improving the Short-selling System) Prior to the May 3 partial resumption, the FSC will work on measures to improve the short-selling rules. First, The FSC will work to ensure the detection of and punishment on illegal short-selling activities. With the revised Financial Investment Services and Capital Markets Act, short-sellers will be required to keep their securities lending data for five years and the securities firms will be required to tighten monitoring of illegal short-selling activities. The securities firms are currently in the process of getting their systems ready according
Attachment 1
Feb 03, 2021

Financial Industry Policy Agenda to Focus on COVID-19 Recovery and Financial Stability

The FSCs Financial Industry Bureau announced its specific policy agenda for this year, which aims to support COVID-19 recovery and ensure financial stability while seeking innovation in the financial industry. The key policy tasks are the following(a) bolstering pandemic response and risk management, (b) improving the role of region-based and microfinance institutions, (c) strengthening the competitiveness of the financial industry and (d) facilitating digital innovation in the financial industry. Policy Tasks A. Pandemic Response and Risk Management (1) Prepare measures for a gradual rollback of the pandemic-related temporary financial support programs - (Maturity extension, etc.) Introduce plans for loan maturity extension and deferment of payments currently in place to cope with COVID-19 (Feb 2021) - (Temporary deregulatory measures) Review whether to extend the period of the temporary deregulatory measures put in place due to the COVID-19 pandemic - (Loss absorbing capacity) Require financial institutions to maintain a sufficient level of loss absorbing capacity through loan loss provisions and dividend limits (2) Strengthen risk management in the non-banking sector - (Credit finance companies) Introduce measures to more effectively manage liquidity risks - (Savings banks) Introduce capital buffers (+2%p) to boost their loss absorbing capacity in a preemptive way - (Mutual finance companies) Strengthen management on large loans (March 2021) (3) Prepare for the implementation of IFRS 17 - (Impact analysis) Conduct an impact analysis on insurance companies regarding the implementation of IFRS 17 and the new accounting standards (K-ICS) from 2023 (within 2021) - (Implementation capabilities) Ensure a seamless implementation of K-ICS through a gradual application and by allowing insurance companies capital expansion - (Law revision) Introduce revisions to the Insurance Business Act to prepare for the implementation of IFRS 17 from 2023 (H2 2021) B. Region-based and
Attachment 1
Feb 02, 2021

Government Approves Stronger Investor Protection on High-risk Investment Products

The government approved the revisions to the Enforcement Decree of the Financial Investment Services and Capital Markets Act at a cabinet meeting on February 2. As a follow-up to the measures to strengthen investor protection with high-risk investment products announced in December 2019, the approved revisions are intended to bolster investor protection by (a) specifying the criteria for determining highly complex investment products, (b) strengthening requirements on the recording and cooling-off period during the sales process of highly complex investment products, (c) newly establishing a legal ground to regulate sellers of OEM funds, (d) tightening regulations to close loopholes of publicly offered funds being sold in the form of a private fund and (e) raising the retail investors minimum investment threshold in hedge funds from KRW100 million to KRW300 million. The new regulations on OEM fund sellers, closing loopholes of publicly offered funds being sold as a private fund and the increased minimum investment threshold for retail investors will go into effect immediately after the promulgation. Meanwhile, the regulatory measures on highly complex investment products will take effect three months after the promulgation. * Please refer to the attached PDF for details.
Attachment 1
Feb 01, 2021

Government Makes Available KRW12.8 Trillion Extra Lending Support for Small Merchants and SMEs

The FSC announced the availability of additional lending assistance for small merchants and SMEs in the amount of KRW12.8 trillion ahead of the Lunar New Year holiday. Loans in the amount of KRW9.3 trillion (KRW3.85 trillion in new loans and KRW5.45 trillion in maturity extensions) will be provided to the small merchants and SMEs experiencing hardships with an additional interest rate reduction of up to 0.9 percentage points. Guarantees in the amount of KRW3.5 trillion (KRW0.7 trillion in new guarantees and KRW2.8 trillion in maturity extensions) will be available with special guarantees of up to KRW300 million each for the pandemic-hit businesses. The lending programs will be available from the Industrial Bank of Korea, Korea Development Bank and Korea Credit Guarantee Fund until February 26, 2021. * Please refer to the attached PDF for details.
Attachment 1