NH NongHyup Financial Group will provide more than 27 trillion won in financial support for the financially underprivileged such as farmers and young people and small business owners and the self-employed.
According to NH NongHyup Financial Group on Sept. 27, this support package consists of three main categories — the NH Win-Win Support Program for financially vulnerable borrowers, the operation of the COVID-19 Financial Support Alternative Program and participation in the government’s livelihood stabilization measures.
About 480,000 people are expected to benefit from the support package.
First, the NH Win-Win Support Program will be launched to ease burdens on vulnerable borrowers suffering from big interest rate hikes and an economic slowdown. It plans to provide benefits to a total of 110,000 people through a customized program that reduces financial burdens depending on the characteristics of vulnerable borrowers.
NH NongHyup Financial Group will reduce interest burdens on farmers by applying a preferential interest rate of 0.30 percent or less to loans to farmers and providing a preferential interest rate of 1.60 percent or less to general smart farm funds for farmers, in particular, young farmers.
The Loan Principal Reduction Program, which automatically repays principals at interest amounts exceeding certain levels will be implemented with regard to extending personal credit loans to low-credit and those with multiple debts.
Programs for the vulnerable such as young people and ordinary people have already started at the end of August.
Preferential interest rates for loans for rents to youths has been doubled to up to 0.60 percent preferentially, and a preferential interest rate for low-income financial products including the New Hope Seed Loan has been increased to 0.50 percent to reduce interest burdens caused by an increase in the key interest rate as much as possible.
In addition, NH NongHyup Financial Group will prepare a program to lighten repayment burdens on borrowers by converting existing loans to small business owners and young people into long-term amortization and directly bears rental deposit return guarantee insurance premiums and pay for revenue stamps to make an improvement in the financial conditions of vulnerable borrowers.
All affiliates of NH NongHyup Financial will join forces for soft landings for vulnerable borrowers including small business owners who received financial support due to the COVID-19 pandemic.
NongHyup Bank is planning to support customers who use anti-COVID-19 financial support program by preparing a COVID-19 soft landing support plan. NH Capital and NH Savings Bank also plan to participate through similar programs.
It plans to actively participate in government-led measures to stabilize the livelihood of ordinary people such as a new start fund for small business owners suffering from the prolonged COVID-19 crisis and a program to lower interest rates.
In the meantime, NH NongHyup Financial Group has decided to invest in Southeast Asian big tech companies as part of its global digital expansion strategy.
NH NongHyup Financial Group announced on Oct. 12 (local time) that it has established NH Southeast Asia Growth Enterprises Fund worth US$15 million to invest in fintech companies in Southeast Asia.
NH NongHyup Financial Group held a launching ceremony for the fund at the Singapore Stock Exchange and announced strategies for expanding its business and advancing into Southeast Asia.
The fund was jointly invested in by NH Investment & Securities and NH Capital, and will be managed by NH ARP, a subsidiary of NH Investment & Securities in Singapore.
The amount of the fund is US$15 million. NH Investment & Securities’ subsidiary in Singapore is planning to additionally raise funds to steadily establish a growth company fund series. The company plans to make its first investment in October.
Starting with the launch of the fund, the local subsidiary in Singapore will create synergies among affiliates within NH NongHyup Financial Group by reviewing an investment plan for NH Investment & Securities’ overseas subsidiaries and local digital platform operators and jointly raising funds with all NH NongHyup affiliates.
“Through the launch of the fund, we will discover and invest in growing Southeast Asian companies and fintech companies jointly with NH NongHyup affiliates,” said Kim Ik-soo, head of management planning at NH Investment & Securities.
