Ahead of the Chuseok holiday, the financial sector will supply about 103 trillion won in funds to small business owners and small and midsize enterprises. Loan maturities and credit card payment dates that fall during the holiday will be extended to Sept. 28, immediately after the break.
On the 13th, the Financial Services Commission said policy finance institutions and all parts of the financial sector will implement measures to reduce inconvenience using financial services during the Chuseok holiday and to support vulnerable groups.
Policy finance institutions such as Korea Development Bank (KDB), Industrial Bank of Korea (IBK), and Korea Credit Guarantee Fund (KODIT) will support new loans and guarantees totaling about 23 trillion won for small business owners and small and midsize enterprises, as well as extensions of existing loan maturities. KDB will supply 3.7 trillion won, IBK 9.2 trillion won, and KODIT 10.1 trillion won. KDB will also offer interest rate cuts of up to 0.4 percentage point, and IBK up to 0.3 percentage point for settlement-type working capital loans.
Banks will offer preferential interest rates based on transaction contribution and credit rating, supplying a total of 79.6 trillion won in loans. New loans will total 32.2 trillion won, and maturity extensions 47.4 trillion won. The Korea INclusive Finance Agency (KINFA) will provide 5 billion won in holiday funds to merchants in traditional markets. Merchants can borrow up to 10 million won at an annual interest rate of up to 4.5% through their merchants associations.
If loan maturities at financial companies fall between Sept. 24 and 27, the Chuseok holiday, they will be automatically extended to the 28th without interest in arrears. Automatic payment dates for credit card bills and for insurance premiums, telecom fees, and utilities will also be deferred to the 28th.
Home pensions with payment dates during the holiday will be paid on the 23rd. Deposits maturing during the holiday will be repaid on the 28th, including interest for the holiday period. Depending on the product, early payment on the 23rd is also possible upon customer request.
For urgent financial transactions during the holiday, 12 banks will operate 11 mobile branches at highway rest areas and other locations where cash deposits and withdrawals and new bill exchange are available. In airports and areas with concentrations of foreign workers, 11 flexible branches will operate for currency exchange and remittances.