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Financial Services Commission. (photo = Financial Services Commission) |
[Alpha Biz= Paul Lee] As concerns mount over the potential damage to domestic industries from U.S.-led tariff hikes, the South Korean government has called on top financial holding groups and policy banks to step in with financial support for affected companies.
On April 7, Kim Byung-hwan, Chairman of the Financial Services Commission (FSC), held an emergency meeting at the Seoul Government Complex. The meeting was attended by Lee Bok-hyun, Governor of the Financial Supervisory Service (FSS), and chairmen of the country’s five major financial holding groups—KB, Shinhan, Hana, Woori, and NH NongHyup—as well as the heads of KDB Korea Development Bank and IBK Industrial Bank of Korea.
“In the face of heightened global economic and financial uncertainties triggered by the reciprocal tariff measures from the U.S., it is crucial that we manage the domestic economy and financial markets stably for the remaining two months of the current administration,” said Kim. He urged financial groups and policy banks to play a more proactive role in stabilizing the markets and supporting businesses with liquidity.
Kim expressed concern over the potential financial strain on exporters and their supply chain partners due to the tariffs, and emphasized that the authorities are prepared to deploy financial support measures swiftly. The government has prepared a 100 trillion won (approx. $74 billion) market stabilization program, including 60 trillion won in corporate financial aid and 40 trillion won in capital market support, such as stock and bond stabilization funds.
Separately, the five major financial groups announced a collective financial support plan worth approximately 26 trillion won to assist small businesses and SMEs affected by the tariff conflict.
KB Financial Group unveiled an 8 trillion won interest rate reduction program for SMEs and small business owners. Shinhan Financial Group pledged 6.4 trillion won in similar support, with a total package of 10.5 trillion won in financing. Hana Financial Group committed 6.3 trillion won, and NH NongHyup Bank announced 1.3 trillion won in assistance.
AlphaBIZ Paul Lee(hoondork1977@alphabiz.co.kr)
