The purpose is to support indebted low-income families so they do not collapse under the impact of the recession. After a first economic emergency meeting on Thursday chaired by President Lee Myung-bak, Financial Services Commission Chairman Jun Kwang-woo said the government is pushing for the plan.

Jun said low-income families may see their debt grow while secondary financial institutions may experience a rise in insolvent loans if the recession worsens.

As part of the pre-workout program, commercial banks including Kookmin, Shinhan and Hana are either extending maturity and installment periods, cutting interest rates or moving lump sum repayment to installment methods for clients who have missed payments for a short time and are considered potential delinquents.

An FSC official said the pre-workout programs, which are already being offered by a number of commercial banks, will be expanded to others as well as insurers and savings and trusts.

Meanwhile, the Creditor Bank Coordinating Committee elected Sogang University Honorary Professor Kim Byoung-joo (69) as its chairman. The committee is a self-regulating body of creditor financial institutions that make the final decision whether to support or shut insolvent companies.

Kim told reporters it would be better to pursue rational rather than speedy restructuring. He added corporate restructuring will take a little longer than the Jan. 23 deadline envisioned by financial authorities.

The FSC had originally planned to announce the primary list of cash-strapped construction companies and shipbuilders that are to be closed down by Jan. 23.

(englishnews@chosun.com )