Banking sector, "Small business owners will lower their interest burden by KRW 600-700 billion"

The banking sector has decided to support debt adjustments such as long-term installment repayment or interest rate reduction for small business owners who have difficulty repaying their loans.

The Federation of Banks and 20 banks held a meeting with financial authorities to announce support measures to lower the repayment burden for borrowers and others who are concerned about delinquency.

According to this, existing business loans will be converted into long-term amortization products of up to 10 years, and interest rates will be reduced in the process.

Financial authorities estimated that this would reduce the interest burden by 600 to 700 billion won on the loan amount of 14 trillion won for 250,000 people per year.

Kim Byung-hyun, chairman of the Financial Services Commission, said, "It could be a burden on the banking sector in the short term, but if sincere repayment is made, debt risks across the nation's economy could be reduced."