103 Trillion Won to Be Released Ahead of Chuseok… Loan Maturities and Credit Card Payments Extended

A total of 103 trillion won in funds will be supplied to small business owners and small and medium-sized enterprises (SMEs) for the Chuseok holiday.

The Financial Services Commission announced on the 13th that policy financial institutions and all financial sectors will supply funds to vulnerable sectors in this manner during the Chuseok holiday.

This consists of 23 trillion won in special loans and guarantees from policy financial institutions (support period from August 24 to October 12) and 79.6 trillion won in preferential interest rate loans from the banking sector.

The Korea Development Bank will supply a total of 3.7 trillion won (2.2 trillion won in new loans and 1.5 trillion won in extensions) for working capital through branch consultations and reviews, and will also offer preferential interest rate cuts of up to 0.4 percentage points (p).

The Industrial Bank of Korea will supply a total of 9.2 trillion won in funds, including 3.7 trillion won in new loans and 5.5 trillion won in extensions.

The Korea Credit Guarantee Fund will supply a total of 10.1 trillion won in guarantees (2.1 trillion won in new guarantees plus 8 trillion won in extensions).

It will simplify review procedures for special and preferential guarantee programs, while providing favorable terms for guarantee fees, guarantee ratios, and guarantee limits.

In the banking sector, loans totaling 32.2 trillion won in new financing and 47.4 trillion won in maturity extensions will be supplied to small business owners and SMEs, reflecting preferential interest rates based on transaction contribution and credit ratings.

The support period runs from August 24 to October 16 based on the four major commercial banks.

The support period varies slightly by bank.

The Korea Inclusive Finance Agency will support a total of 5.0 billion won in holiday funds through merchant associations to resolve the demand for holiday goods purchase funds among traditional market merchants ahead of the Chuseok holiday.

Traditional market merchants can use small-scale loans of up to 10 million won at an interest rate of 4.5 percent or less per annum through merchant associations for two months prior to the Chuseok holiday (July 20 to September 23).

Convenience for consumer financial transactions will also be enhanced.

If the repayment maturity of loans from financial companies such as banks, insurance companies, savings banks, and credit card companies falls during the Chuseok holiday (September 24 to 27), the maturity will be automatically extended to September 28 without overdue interest.

Credit card payments will also be automatically withdrawn on the 28th of this month without overdue fees.

For insurance premiums, telecommunications fees, and public utility bills, if the automatic payment date overlaps with the holiday, the withdrawal date will be postponed to after the holiday.

The Korea Housing Finance Corporation plans to disburse housing pensions in advance on the 23rd of this month to all customers whose housing pension payment dates fall during the Chuseok holiday.

In addition, all financial companies plan to refund deposits whose maturities fall during the Chuseok holiday, including interest for the holiday period, on the 28th.

Depending on the product, payment can also be made on the 23rd upon customer request.

If the payment date for proceeds from stock sales, which is normally paid two days later (T+2 settlement), falls during the Chuseok holiday, it will be postponed to immediately after the holiday.

For example, the date for receiving proceeds from stocks sold on the 23rd of this month will be the 29th after the holiday, rather than two days later on the 25th.

Considering situations where urgent financial transactions are necessary even during the Chuseok holiday, 12 banks will operate 11 mobile branches capable of deposits, withdrawals, and new banknote exchanges at expressway rest areas and other locations, as well as 11 flexible branches capable of currency exchange and remittances at airports and areas dense with foreign workers.

Meanwhile, the Financial Services Commission advised, "Around the Chuseok holiday, caution is needed against text message scams impersonating public institutions, such as masquerading as holiday gift delivery or imposing fines for traffic law violations."

(Photo: Yonhap News)
※ Please note: This article was translated by AI and may contain errors.