Small Business Owners, "Need to Extend Grace Period with Interest Rate Cap"

[Financial News] "It would be nice to set a cap on variable interest rates so that we don't feel burdened even if the store situation suddenly becomes difficult." (Yoon Hyung-jun, CEO of Cheon365, Sincere Repayer)
The Ministry of SMEs and Startups held a 'Relay Meeting for Small Business Recovery and Safety Net Enhancement' at the Small Business Support Center in central Seoul on the 30th, presided over by Minister Han Sung-sook. At the event, 10 small business owners attended to voice support for △sincere repayment △disaster damage △debt adjustment and recovery.
Yoon Hyung-jun, CEO of Cheon365, said, "I took out a loan with a variable interest rate, but as we enter a high-interest rate phase, the interest is gradually increasing," and added, "Even if it is lower than the market interest rate, if the interest rate fluctuation range is too high, it can only be a burden for small business owners."
Another sincere repayer, Son Jung-woon, CEO of Breathe Into, said, "I am using the repayment extension system and renewing the contract," and added, "I would like to be granted a short-term grace period to better repay the loan."
There was also an opinion that disaster insurance should be reformed so that small business owners who have suffered disaster damage can recover. Moon Dae-gyo and Bada CEOs said, "A fire broke out early this year, and the actual damage was about 80 million won," and added, "Fortunately, we had fire insurance, so we received 35 million won, but it was not enough, and we have not yet fully recovered."
CEO Moon said, "Since the store is inside a traditional market, we cannot subscribe to private insurance due to the building management grade," and added, "With the amount we receive now, it is difficult to restore the store when facing a disaster. We hope to receive differentiated fire insurance payments considering the actual damage scale."
He continued, "I learned through today's event that there is a wind and flood insurance policy where you can be guaranteed 150 million won by paying an annual premium of 50,000 won," and added, "Many small business owners are not aware of the policy, so it would be good if the government actively promotes it."
In response, Minister Han Sung-sook said, "We will actively promote policies to small business owners in collaboration with relevant departments such as the Ministry of the Interior and Safety and ensure they can receive help."
There was also a voice that small business owners with technical skills but difficult conditions for recovery should be actively supported. Kim Hyo-jun, CEO of Hongik Medical, said, "I started a business with medical devices in 2016, but was hit hard by COVID-19 and closed in June this year," and added, "There will be many small business owners nationwide who have suffered major disaster damage due to COVID-19."
CEO Kim said, "I have the will to recover and am confident in terms of technical skills," and added, "Even though I have the ability and qualifications, I hope there will be more support systems like the re-startup program or hope return package for those struggling to recover due to the aftermath of COVID-19."
The Ministry of SMEs and Startups plans to hold relay meetings 10 times over about two months starting with this event and announce small business policy tasks. They plan to collect opinions on △financial safety net △crisis safety net △closure and recovery safety net heard on-site and reflect them in the policy.

kaya@fnnews.com Choi Hye-rim Reporter