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Mar 17, 2020
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Mar 13, 2020
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Mar 13, 2020
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Mar 12, 2020
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Mar 12, 2020
- Vice Chairman Holds Meeting to Assess Progress of COVID-19 Financing Support
- FSC Vice Chairman Sohn Byungdoo convened a meeting on March 12, 2020 to assess the implementation of the financing support for the SMEs and small merchants hit by the COVID-19 outbreak.PROGRESSBetween February 7 and March 10, a total of KRW4.6346 trillion (60,813 individual cases) in loans and guarantees as well as loan and guarantee extensions were provided to the SMEs, small merchants and self-employed business owners whose businesses have been hit by the spread of COVID-19► Financing by type: KRW 2.0633 trillion (32,309 cases) in new loans, KRW 2.406 trillion (25,393 cases) in maturity extensions and deferred payments, and KRW 165.3 billion (3,111 cases) in export-import credit finance, discounted interest rates and late fees and deferment of interest payment► Financing by industry: KRW703.9 billion to wholesale businesses, KRW499.8 billion to restaurant businesses and KRW485.3 billion to retail businesses► Financing by provider: KRW2.7892 trillion (42,693 cases) by policy banks, KRW1.8454 trillion (18,120 cases) by private financial institutions FURTHER PLANSThe FSC will work to maintain stability in the financial system amid the spread of COVID-19. As for call centers, the group training will be refrained. While continuing to improve the business continuity plans, the government will encourage financial institutions to draw up additional response plans to help contain the spread of COVID-19.* Please refer to the attached PDF for details.
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Mar 11, 2020
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Mar 11, 2020
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Mar 10, 2020
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Mar 10, 2020
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Mar 06, 2020
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Mar 05, 2020
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Mar 05, 2020
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Mar 04, 2020
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Mar 04, 2020
- FSC Plans to Introduce Consumer Credit Bill to Enhance Financial Inclusiveness
- The FSC announced on March 3, 2020 its plans to draft a bill on consumer credit and push for the enactment of the legislation within this year in order to enhance financial inclusiveness.The new legislation will replace the current Act on Registration of Credit Business, etc. and Protection of Finance Users. It will take essential provisions on the contents and procedures of loan contracts from the Credit Business Act, while establishing new regulations on delinquent debt management, termination of contracts, etc.BACKGROUNDUnder the current personal debt management system, it is extremely difficult for delinquent debtors to recover on their own while facing a risk of turning into long-term delinquent debtors.► Only about 14,000~17,000 delinquent debtors out of 26,000~28,000 every year are found to seek personal debt restructuring programs while many choose not to.► The burden of arrears and repayments as well as the pressure of debt collection cause disruptions and distress to daily lives.► The debt collection process heavily focuses on the performance of debt collection while overlooking issues related to consumer trust.KEY PROVISIONSThe improvement will focus on providing more safeguards for debtors and providing more chances to get back on their feet by modifying the structure that currently tolerates excessive debt collection practices.The government will work to establish a legal principle for a balanced approach to debt collection that takes into account not only debt collection performance but also consumer trust.I. PROVIDE TAILORED SUPPORT TO DEBTORS FOCUSING ON THEIR NEEDSEstablish a new debtors’ right through which they can request debt restructuring from financial institutions, which will help them find ways to get back on their feet and resume normal economic activities.► Delinquent debtors will have an option to request a debt restructuring program when facing diminished debt servicing capacity. Upon such a request, financial institutions will
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Mar 03, 2020
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Mar 03, 2020
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Feb 28, 2020
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Feb 28, 2020
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Feb 27, 2020
- Financial Policy Plans to Support Innovative Start-ups & SMEs
- The FSC outlined this year’s policy plans to support Korea’s innovation-led growth on February 26, 2020, as a follow-up to the 2020 work plan announced on February 17. The plans are intended to provide innovative start-ups and SMEs with financing support.KEY PLANSI. TARGETED SUPPORT TO 1,000 INNOVATIVE FIRMSThe government will select more than 1,000 innovative companies and provide KRW40 trillion in loans, investment and guarantees.▪ SELECTIONCandidates will be selected upon recommendations by economic ministries, financial companies and venture capitalists. A consultative body of policy banks will review candidates and select 1,000 companies based on their innovativeness of business.▪ FINANCIAL SUPPORTThose selected will be provided with KRW40 trillion over three years: KRW15 trillion in loans, KRW15 trillion in investment and KRW10 trillion in loan guarantees.▪ INNOVATIVE FIRMS WITH GLOBAL COMPETITIVENESSAmong 1,000 firms, 30 or more companies showing growth potential for global markets will be selected and provided with assistance to attract private investments from domestic and overseas venture capitalists.II. Introduction of Business Credit Scoring System Modeled after PaydexThe government plans to develop a business credit scoring system modeled after Paydex. The new system is designed to use companies’ non-financial business transaction information to determine their credit scores, thus offering companies a complementary channel to raise funds.▪ DEVELOPMENT PLANa) Set up a database of business transactions through collection of data from the Korea Credit Guarantee Fund and from external institutions, such as the Korea Financial Telecommunications Clearings Institute and the Korea Employment Information Serviceb) Produce business credit scores using the business transactions database after reviewing payment histories, business activities and payment capabilities of companiesc) Provide business credit scores to banks for the development of new gua
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Feb 27, 2020