The five major commercial banks have begun financial support for victims related to the Jeju Air aircraft disaster at Muan International Airport. This follows a review of financial support measures intended to assist victims and affected areas, which was communicated to the banks by financial authorities last month.
According to the financial sector on the 4th, KB Kookmin Bank, Hana Bank, and NH NongHyup Bank have started financial support for victims of the Jeju Air disaster since last month. Kookmin Bank has allowed the extension of household loans by applying a preferential interest rate within 1.5 percentage points for personal loans and 1.0 percentage points for corporate loans without additional repayments on loans reaching maturity for victims and bereaved families. Additionally, if they repay the principal and interest normally within three months, the late payment interest will be waived.
Hana Bank has enabled the extension of loan maturities for existing victims and bereaved family loans for up to one year without principal repayment when due. They have also enacted measures to postpone principal and interest repayments for up to six months. Additionally, both banks included provisions to support emergency management funds of up to 500 million won for small and medium-sized enterprises and individual businesses, along with loans for emergency living stabilization funds of up to 20 million won (Kookmin Bank) and 50 million won (Hana Bank).
NH NongHyup Bank has also been accepting applications for loan maturity extensions and principal and interest repayment postponements for victims and bereaved families since last month. Alongside commercial banks, IBK Industrial Bank of Korea has initiated special financial support for corporate clients and individual clients, including emergency living stabilization funds and loan repayment postponements upon maturity. Victims will also receive preferential rates if they terminate their deposits early. However, it has been confirmed that Woori Bank and Shinhan Bank have not prepared support measures related to the disaster victims and their families.
The financial sector has been engaged in financial support and donation activities centered around the five major commercial banks during significant social disasters. During the Sewol Ferry disaster in 2014 and the Itaewon disaster in 2022, they provided similar support measures, including loan repayment postponements and maturity extensions, and in some cases opened special financial support windows or established their own funds to raise donations.
Earlier, on the 30th of last month, financial authorities requested insurance companies to operate on-site consultation offices for speedy insurance payouts. Accordingly, the Korea Life Insurance Association and the General Insurance Association have set up a rapid compensation center at Muan International Airport and dispatched personnel to assist with insurance subscription inquiries and claims procedures.