In preparation for Chuseok, banks will supply approximately 80 trillion won to small and medium-sized enterprises (SMEs) and small businesses facing increased funding demands. This initiative includes not only new loans but also maturity extensions and interest rate benefits to alleviate financial burdens around the holiday.
According to the financial sector on September 25, banks will offer a total of 79.6 trillion won in preferential loans to SMEs and small businesses before and after the Chuseok holiday. This includes 32.2 trillion won in new loans and 47.4 trillion won in maturity extensions for existing loans. Preferential interest rates will be applied based on transaction contributions and credit ratings.
KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup banks will each provide 15.2 trillion won. Each bank will supply 6.2 trillion won in new funds and extend the maturity of existing loans by 9 trillion won. The support period runs from August 24 to September 16.
Businesses can borrow up to 1 billion won, depending on their funding needs. SMEs and small businesses with maturing loans can extend their maturity without repaying part of the principal unless there are special circumstances, and they may also receive deferrals on installment payments. Each bank will apply a maximum preferential interest rate of 1.5 percentage points.
NH Nonghyup Bank will also support a total of 13.575 trillion won, including 5.075 trillion won in new loans and 8.5 trillion won in maturity extensions, until September 12. Eligible businesses will receive a 0.1 percentage point interest rate benefit.
Policy financing institutions are also stepping in to provide holiday funding. The Korea Development Bank, Industrial Bank of Korea, and Korea Credit Guarantee Fund will support a total of 23 trillion won in new loans and guarantees for SMEs and small businesses. The Korea Development Bank will provide 3.7 trillion won, the Industrial Bank of Korea will supply 9.2 trillion won, and the Korea Credit Guarantee Fund will offer guarantees worth 10.1 trillion won. Consequently, the total funding from banks and policy financing institutions around Chuseok will reach 102.6 trillion won.
The financial sector's large-scale allocation of special holiday funds aims to ease the financial difficulties faced by SMEs and small businesses, which experience a temporary increase in working capital needs due to bonus payments and raw material costs. Financial authorities plan to continue supporting policy financing and interest rate relief for small businesses even after Chuseok.
* This article has been translated by AI.
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