South Korea to Allot KRW 2T to support Small Businesses

South Korea and its commercial banks will provide 2 trillion won ($1.53 billion) to support small and large businesses, an organization representing lenders said on Dec 21. In the political and legal pressures to distribute the products to the community.

The  Federation of Korean Banks, which represents 23 financial institutions, including Kookmin Bank and Woori Bank, said it plans to invest a total of 1.6 trillion won in refinancing the amount borrowers pay to help them cope with rising costs of life, including interest. Increase in interest rates.

Pressure has been building on local lenders to share their profits, with the country's four largest commercial banks' combined profits from lending activities at almost 33 trillion won last year, up more than 20 percent on the year.

"Small business owners have been hit hardest due to factors including rising interest rates, even before things got better from the COVID-19 pandemic," said Kim Joo-hyun, chairman of the country's regulator Financial Services Commission, adding the banks' plan to offer financial support will help mom-and-pop businesses.