FSC Offers Financial Support for Flood-Hit Households and SMEs with Emergency Funds and Loan Extensions

The Financial Services Commission (FSC) announced today (August 20) that it has prepared various financial support measures to help flood-affected households and small- and medium-sized enterprises (SMEs) swiftly return to their daily lives.

Households impacted by the floods will receive support including emergency living stability funds, 3-month to 1-year maturity extensions and repayment deferrals on existing loans, up to 6-month grace periods on insurance premium payments along with prompt insurance payouts, deferred credit card payments, and special debt adjustments for overdue loans.

Small business owners and SMEs hit by the floods will also receive emergency business stability funds, extensions on existing loan maturities, repayment deferrals, and debt adjustments for overdue loans.

In addition, the Financial Supervisory Service (FSS) will open a consultation center to provide customized counseling services, such as executing and extending loans for disaster recovery.

In regions suffering particularly severe flood damage, financial counseling personnel will be dispatched to the field when necessary to ensure prompt financial support is provided.

The FSC plans to form an "Emergency Financial Response Team for Flood Damage" in cooperation with the FSS, related financial institutions, and industry associations to assess the damage situation and comprehensively oversee the financial support response.

The FSC stated, "We will continuously monitor the flood situation and closely oversee that financial support measures are provided in a timely manner through relevant ministries and local governments so that affected citizens can genuinely feel the relief."

As torrential rains expanded mainly centered around the southern regions including Geoje, South Gyeongsang Province, starting from the 15th, the Ministry of the Interior and Safety raised the heavy rain crisis alert level to "Caution" the following day and activated the first stage of the Central Disaster and Safety Countermeasures Headquarters.

Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol also stated on the same day that the government would consider proclaiming regions such as Geoje and Tongyeong in South Gyeongsang Province as special disaster zones.

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