[Photo by Bank of Korea]
South Korea’s central bank chief hinted at a possible change in the broad coronavirus aid for businesses, suggesting a more tailored approach might be needed to secure finances for the long haul.
“The COVID-19 crisis at first seemed like a passing rain shower, but it’s now looking more like the start of a long monsoon season,” Bank of Korea (BOK) Governor Lee Ju-yeol was quoted as saying in a meeting with local bank leaders last week.
He suggested it was time to take a more long-term approach to the protracted pandemic, and questioned the banks’ ability to continue providing sweeping financial assistance to corporations.
Lee, however, stressed the need to provide sustained financial support for households and businesses struggling to stay afloat amid the outbreak.
Lee insisted that any changes to the rescue approach “should not be interpreted as a sign that the state is pulling back or reducing support,” according to those who attended the meeting.
Massive state-backed loans to rescue companies hit hard by the pandemic have raised concerns among local lenders of their mid- to long-term financial health.
[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]