Members of the People Power Party met with major bank heads to request financial support for small and medium-sized enterprises and small business owners who are concerned about the impact of tariffs stemming from the United States.
According to the financial sector on the 9th, members of the People Power Party, affiliated with the National Assembly's Political Affairs Committee, held a 'People Power Party-Banking Sector Field Meeting' at the Banking Hall in Jung-gu, Seoul, on the morning of that day. The meeting included heads of the five major commercial banks: KB Kookmin, Shinhan, Hana, Woori, NH Nonghyup, as well as the Jeonbuk Bank president and the CEO of Toss Bank.
Yoon Han-hong, the chairman of the Political Affairs Committee, noted that 'since President Trump took office, the reality of tariff bombs has emerged. Each corporation is struggling, and it seems that the effects will extend to small and medium-sized enterprises, small business owners, and self-employed individuals,' adding, 'We have to conduct negotiations with the U.S. in the future, and I came to hear the opinions of the financial sector.'
Jo Yong-byeong, chairman of the Korean Bankers Association, stated, 'The domestic and international environment surrounding the economy is not favorable. Following last week's announcement of mutual tariffs by the United States, a trade war has erupted, and concerns about a global economic downturn have been raised. The economy is facing greater challenges than ever before.' He further mentioned, 'The banking sector is fulfilling its role as an economic safeguard,' and continued, 'We are closely coordinating with authorities to ensure timely funding support for industries and corporations concerned about the damage arising from U.S. tariff policies, and we plan to prepare specific financial support measures soon.' He also noted, 'To alleviate the financial burden on small business owners, we are preparing tailored financial support measures to be implemented in April.'
Members of the People Power Party received a report on current issues regarding the support measures for small business owners promoted by the banking sector at the meeting. The financial authorities and the banking sector announced that they would support 250,000 self-employed individuals (small business owners) who are facing risks of arrears or business closures with 700 billion won annually and a total of 2 trillion won over three years starting last December.
Banks requested regulatory relaxation. They initially demanded a relaxation of the capital regulations from the Bank for International Settlements (BIS). Lowering the risk weighting for loans to small and medium-sized enterprises could allow for more active funding in productive areas, they stated. They also conveyed a proposal to facilitate the linking of accounts with multiple banks for virtual asset exchanges. Currently, exchanges are operated in a system where one exchange is linked to one bank, but they pointed out the need for improvement in allowing connections with multiple banks as it limits consumer choice.
Kang Min-guk, secretary of the People Power Party's Political Affairs Committee, stated, 'The role of banks is more important at this point, and if there are regulations, I think we need to destroy them rather than just relax them,' adding, 'In the future, we will discuss in the political affairs committee and address legislative needs through legislation and solve issues that can be resolved with policy through policy.'