Sogongyeon "Interest and Fee Burden Should Be Eased for Small Business Owners Who Repay Loans Diligently"

[Financial News] "It is necessary to prepare various incentives, such as lowering interest rates for diligent payers and giving priority in future policy funding support."
Song Chi-young, chairman of the Korea Federation of Small and Medium Business, said this at the 'Small Business Finance Difficulty Meeting' held on the 17th at the Digital Education Center of the Korea Federation of Small and Medium Business in Mapo-gu, Seoul, with government departments related to small businesses, related organizations, and experts.
The meeting was held as part of collecting on-site opinions to solve the small business debt problem and announcing the policy direction of the financial authorities related to small business finance. It is a follow-up measure to the discussion on easing the debt burden of small businesses discussed at the town hall meeting in the Chungcheong region presided over by the president on the 4th.
Attendees included Kwon Dae-young, Secretary General of the Financial Services Commission, Hwang Young-ho, Head of the Small Business Management Support Group of the Ministry of SMEs and Startups, and representatives of financial companies and experts such as Cho Yong-byeong, Chairman of the Korea Federation of Banks, and Jeong Wan-gyu, Chairman of the Credit Finance Association. From the Korea Federation of Small and Medium Business, Chairman Song Chi-young and representatives of industries and regions, as well as small business owners, participated.
The Korea Federation of Small and Medium Business proposed on-site △support for financial policies for diligent payers △establishment of hope accounts △construction of a customized credit evaluation model △integration of debt adjustment platforms △activation of the startup mentoring system △expansion of the target for early repayment fee reduction △expansion of direct loans by the Small Business Market Promotion Corporation △easing of card loan regulations △inclusion of new start-up fund agreement institutions for loan companies △promotion measures for debt reduction programs.
Song Yu-gyeong, Vice Chairman of the Korea Federation of Small and Medium Business, emphasized, "Currently, financial policy support is mainly focused on vulnerable borrowers or those who have closed their businesses, so those who are diligently repaying in the midst of a management crisis are in a blind spot and are not protected," and "Financial policies such as the introduction of a hope account exclusively for small businesses and debt adjustment should be prepared to increase the possibility of recovery for small business owners who have been consistently repaying."
In response, Kwon Dae-young, Secretary General of the Financial Services Commission, proposed five policy directions, including △establishment of new funding supply plans △preparation of three sets of interest rate reductions, such as easing early repayment fees △promotion of personal business MyData △advancement of small business financial information analysis △development of customized programs for individuals.
The Korea Federation of Small and Medium Business plans to continue consultations for the establishment of financial policies that small business owners can feel through this meeting and to strengthen plans to link with the financial sector.
Chairman Song Chi-young said, "True recovery of people's livelihood depends on the recovery of small business owners and the self-employed, which are important pillars of people's livelihood," and "It is time for the public and private sectors to make every effort to restore the broken ladder of economic growth." 
He added, "It is urgent to establish a one-stop system that supports integrated recovery plans and necessary policies such as debt adjustment and recovery support," and "Additionally, through measures such as easing the burden of payment gateway (PG) fees due to the spread of table orders, introducing specialized mutual aid systems exclusively for small businesses, and establishing specialized banks for small businesses, we need to strengthen the self-help capabilities of small business owners and increase financial accessibility."
kaya@fnnews.com Choi Hye-rim Reporter