The government has decided to yet again extend loan maturity and defer debt repayment deadlines by six months to March of next year for small business owners hit hard by the COVID-19 pandemic.
Financial Services Commission(FSC) Chairman Koh Seung-beom announced the decision on Wednesday in introductory remarks at a meeting of government and ruling camp officials on providing financial support to small businesses and merchants.
Koh said the commission will also devise and implement supplementary ways to help such businesses make a soft landing even after such support measures conclude.
To this end, Koh said the commission will improve the bank sector’s pre-workout system which aims to lessen borrowers’ debt burden before they become delinquent and also enhance the Credit Counseling and Recovery Services credit recovery system. The commission is expected to widen the scope of those who can benefit from such systems.
Koh added that the commission will provide some four trillion won in liquidity through financial institutions.
The government previously extended loan maturity and deferred debt repayment deadlines for small business owners twice before after first implementing the measure in April of last year.