S.Korea banks pledge $1.5 bln for small businesses amid push to share profits

Shinhan Financial

21/12/2023 01:47

SEOUL, Dec 21 (Reuters) - South Korea's commercial banks
will provide 2 trillion won ($1.53 billion) to support small
businesses, the organisation representing the lenders said on
Thursday, amid political and regulatory pressure to share more
of their profits with society.
    The Korea Federation of Banks, which represents 23 financial
institutions including Kookmin Bank and Woori Bank, said of the
total, 1.6 trillion won will be used as cash refund for interest
payments borrowers made, to help them cope with the rising costs
of living as interest rates climb. 
    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% 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. 
($1 = 1,303.1700 won)

 (Reporting by Cynthia Kim; Editing by Muralikumar Anantharaman)
 ((Cynthia.Kim@thomsonreuters.com; 822 3704 5655; Reuters
Messaging: cynthia.kim.thomsonreuters.com@reuters.net))