Recently, the entire financial sector quickly mobilized to support households and small businesses affected by wildfires that occurred nationwide.
According to the financial sector on the 26th, major domestic financial holding companies, commercial banks, card companies, and insurance companies have established various support measures for disaster recovery. KB Financial Group donated 1 billion won and implemented an emergency support program for disaster recovery, while Shinhan Financial Group also set up a fund of 1 billion won to support the bereaved and injured.
Commercial banks also actively participated in relief efforts. KB Kookmin, Shinhan, Woori, BNK Busan, Gyeongnam Bank, and iM Bank will provide emergency loans of up to 20 million won to affected individuals, while Hana Bank will offer up to 50 million won. NongHyup will support affected members with interest-free funds of up to 10 million won per household, and the Fisheries Cooperative will provide living expenses of up to 20 million won to customers who can prove their damages.
Support for existing loans has also been strengthened. Victims can receive a loan maturity extension and repayment deferment for up to one year. Shinhan Bank and Kookmin Bank offer not only loan maturity extensions but also preferential interest rates of up to 1.5% and exemption from arrears interest, while Woori Bank, Hana Bank, and Gyeongnam Bank support repayment deferment and a maximum maturity extension of one year. NongHyup Bank and Busan Bank are also implementing measures for repayment deferment and interest payment deferment.
Card companies are deferring payment requests for affected customers for up to six months. Samsung Card reduces interest if payment installments are switched to a lump sum, while Kookmin Card provides additional support by changing the installment repayment conditions. Shinhan Card and Hyundai Card allow installment repayments after payment deferment, and KB Kookmin Card waives late fees for those who incurred damages. Lotte Card, Woori Card, and Hana Card are deferring collection on overdue amounts and supporting installment repayments.
The insurance industry also provides rapid support for affected customers. Life insurance companies and non-life insurers prioritize processing claims and make early payments. Additionally, the obligation to pay premiums is deferred for up to six months, and insurance contract loans are expedited. The Non-Life Insurance Social Contribution Council donated 50 million won to the Korea Red Cross.
A financial sector official noted, “It is the role of the financial sector to provide quick and practical support to households and small businesses suffering from the damage caused by this wildfire.” They added, “We will promptly support the funds needed for disaster recovery and livelihood stabilization, and implement a variety of financial measures to alleviate the burden on our customers.”