Financial institutions are set to provide a total of 103 trillion won to small businesses and medium-sized enterprises ahead of the Chuseok holiday. Loans and credit card payment deadlines that fall during the holiday will be automatically extended to the 28th.
According to the Financial Services Commission on the 13th, policy finance institutions and banks will implement financial support measures from September 24 to 27 to minimize inconveniences during the holiday.
First, policy finance institutions such as the Industrial Bank of Korea, the Korea Development Bank, and the Korea Credit Guarantee Fund will supply a total of 23 trillion won in new loans and guarantees to small businesses and medium-sized enterprises that experience increased funding needs around the holiday. The Industrial Bank will provide 3.7 trillion won, the Korea Development Bank will offer 9.2 trillion won, and the Korea Credit Guarantee Fund will support 10.1 trillion won.
Additionally, banks will provide a total of 79.6 trillion won in loans to small businesses and medium-sized enterprises around the holiday. This includes 32.2 trillion won in new loans and 47.4 trillion won in maturity extensions. Preferential interest rates will be offered based on transaction contributions and credit ratings.
Among the top five banks, NH Nonghyup Bank will support a total of 13.5 trillion won, including 5 trillion won in new loans and 8.5 trillion won in maturity extensions. KB Kookmin, Shinhan, Hana, and Woori banks will each provide a total of 15.125 trillion won, with 6.125 trillion won in new loans and 9 trillion won in maturity extensions. NH Nonghyup Bank will offer preferential rates of up to 2.3 percentage points, while the other four banks will provide rates of up to 1.5 percentage points.
Separate holiday funds will also be made available for traditional market vendors. The Korea Financial Services Agency has prepared a total of 5 billion won, allowing traditional market vendors to borrow up to 10 million won at an interest rate of 4.5% through their merchant associations.
During the holiday, there is no need to make separate repayments for loans or credit card payments that are due. Loans from banks, insurance companies, savings banks, and credit card companies with maturity dates from September 24 to 27 will be automatically extended to the 28th without late fees. Automatic payments for credit card bills, insurance premiums, and utility fees will also be withdrawn on the 28th.
If the payment date for housing pension benefits coincides with the holiday, recipients can receive their payments in advance on the 23rd. Deposits maturing during the holiday will be paid out on the 28th, including interest accrued during the holiday, and customers may request to receive their funds on the 23rd, depending on the product.
To facilitate urgent financial transactions, mobile and flexible branches will be operational. Twelve banks will set up 11 mobile branches at highway rest areas for deposits, withdrawals, and currency exchanges, and 11 flexible branches at airports and areas with high concentrations of foreign workers for currency exchange and remittances.
* This article has been translated by AI.
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