For Companies Stricken by COVID-19
The Financial Services Commission announced on March 2 that its loan maturity extension and interest payment deferment for non-large companies and small business owners stricken by COVID-19 have been extended by six months from the end of this month.
As a result, the measures have been extended three times in total and the total overdue payment has reached 130.3556 trillion won. Those in the financial sector are expressing increasing concerns in that what is going on means an excessive increase in debt. The amount includes approximately 88.81 trillion won related to banks, over 40.3 trillion won at state-run financial institutions and 1,238.4 billion won in the non-banking sector.
In addition, banks permitted a deferred payment of 6,453.4 billion won with regard to the principal of corporate loans and a deferred interest payment of 45.5 billion won. The principal connected to the interest is estimated at 1,963.5 billion won.