Hana to Launch W26tr Financial Aid Program for Socially Vulnerable People

Hana Financial Group Chairman Ham Young-joo promotes his new 26 trillion won ($19 million) financial support package for the socially vulnerable population in this photo released on Sunday. (Hana Financial Group)

South Korea’s Hana Financial Group said on Sunday it plans to launch a financial relief package worth 26 trillion won ($19 billion) this month that will benefit some 700,000 people each year. vulnerable members of society.

The program named “All Happiness Connected in Hana Finance” will focus on extending loans and reducing interest rates for 350,000 small business owners, 90,000 mortgage borrowers and 250,000 financially vulnerable members of the population, including including customers in their twenties and thirties.

With the government’s program to extend the maturity of COVID-19 loans for small businesses and the self-employed due to end in September, Hana’s new program will allow for a further extension for the group, currently struggling with influence inflation and rising interest rates. The Korean government first launched measures to extend loan principal maturity and defer principal and interest repayment for pandemic-affected small businesses in April 2020.

The support measures for small businesses include a reduction of up to 1 percentage point in interest rates for those who have loans with an annual percentage rate of interest greater than 7%. Additionally, small business owners who have borrowed from non-bank financiers will be able to replace their existing loans with a more “low risk” product offered by Hana.

Hana’s credit card issuer, Hana Card, will participate in the project by offering a 1 percentage point rate reduction to small business owners with credit card debt who can show that their sales have dropped by 30 % during the pandemic.

From October, the financial giant’s flagship commercial lender, Hana Bank, will begin offering a 0.7 percentage point rate reduction to young customers in their 20s and 30s who are preparing to start their own businesses or who are in the first seven years of operating a business.

For senior citizens, including recipients of the basic state pension, Hana Bank will start offering a preferential rate savings account with a relatively high yield from September 17. It will upgrade its ATM system to better meet the needs of its senior customers and establish a senior culture center by the end of the year to provide digital and financial education to seniors.

The commercial lender’s current financially vulnerable customers with stable loan repayment histories will also receive additional interest rate benefits.

Under the new program, Hana plans to spend an additional 1 trillion won to connect job seekers to internship programs at companies deemed socially innovative, financially support young entrepreneurs, and provide education for pre-retirees looking to return to the workforce. work. Single mothers and young people – who come from low-income families or are about to exit the foster care system – will receive support, which will help them achieve “financial independence in society”, the agency said. firm.

“The financial sector must be at the forefront of supporting society’s most vulnerable people and paving the way for universal growth when the economy is struggling,” Hana Financial Group Chairman Ham Young-joo said. in a press release.

“Hana Financial Group will make efforts to change society by helping vulnerable people with real financial support that could touch the hearts of our customers.”

By Jung Min-kyung ([email protected])

Ryan H. Bowman