00:03korea's financial regulator just moved to erase a chunk of pandemic era debt the financial services commission will forgive 5
00:11.4 trillion won in kovid-19 loans the relief targets self-employed borrowers with under 100 million won in debt
00:18overdue for more than three years some borrowers could see discounts of up to 80 percent on what they owe
00:26here's what today's numbers mean for korea's financial sector
00:30it's friday september 11th let's break down what's happening in korea's financial sector
00:36small business owners in korea have carried pandemic era debt for more than five years even as emergency
00:43support programs wound down regulators have repeatedly extended relief measures but overdue balances kept
00:50climbing today's plan is the most direct debt forgiveness effort yet here's what the numbers show
00:575.4 trillion won about 4.03 billion dollars in kovid-19 loans will be forgiven under the new plan
01:05eligible borrowers must owe under 100 million won and have been delinquent for at least three years
01:13the financial services commission will cut principal by up to 80 percent for qualifying debt through the new
01:18start fund separately hanabank and woody bank raise deposit rates by 0.1 to 0.2 percentage points a move
01:28likely to accelerate deposit migration between banks so what does this mean for financial institutions with
01:34exposure to korea earlier we said 5.4 trillion won in pandemic debt will be forgiven here's what that
01:41actually means for you banks holding that debt will need to absorb write downs even as regulators frame this as
01:48a
01:48one-time relief measure the deposit rate moves suggest banks are also bracing for competition over liquidity as the
01:54debt relief plays out watch which banks book the largest write downs from the debt forgiveness program watch whether other
02:02lenders match hana and woody's deposit rate increases watch for signs the new start fund expands eligibility beyond
02:09this round that's today's ai prism finance daily this episode was produced with ai assistance based on
02:17sole economic daily reporting and reviewed by a human editor ai prism is a wanifra award-winning series we'll be
02:26back
02:26tomorrow
02:26tomorrow
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