On Lunar New Year, 12.8 Trillion Won Supplied to SMEs...General Loan Maturities Extended to Just After Lunar New Year

[Asia Economy Reporter Kim Hyo-jin] In celebration of the Lunar New Year, a total of 12.8 trillion KRW in new loans and guarantees will be specially supplied to small and medium-sized enterprises (SMEs). Additionally, 5 billion KRW will be newly allocated to support working capital for micro small business owners by purchasing traditional market Lunar New Year seasonal products. Loans for the general public maturing during the Lunar New Year holiday will have their maturity automatically extended to the day after the holiday, with no late payment interest charged.

On the 19th, the Financial Services Commission announced the 'Lunar New Year Holiday Financial Support Plan to Enhance Convenience for Financial Consumers, SMEs, and Small Business Owners,' prepared together with policy financial institutions and financial companies, which includes these measures.

The financial authorities will provide a total of 9.3 trillion KRW in support through the Industrial Bank of Korea and the Korea Development Bank to SMEs facing management difficulties, including 3.85 trillion KRW in new loans and 5.45 trillion KRW in maturity extensions under the names of working capital and management stabilization funds, until February 9. Loan interest rates will be further reduced by up to 0.6 percentage points.

Also, considering the expected increase in funds needed for payment settlements and bonus payments before and after the Lunar New Year holiday, 3.5 trillion KRW in guarantees will be supplied through the Korea Credit Guarantee Fund. This includes 700 billion KRW in new guarantees and 2.8 trillion KRW in maturity extensions from December 26 last year to February 9. Support funds and guarantees for SMEs can be obtained through special fund consultations at branches of the Industrial Bank of Korea, Korea Development Bank, and Korea Credit Guarantee Fund.

Provided by the Financial Services Commission

The Korea Inclusive Finance Agency, which supports traditional markets through microfinance, will additionally provide 5 billion KRW (target amount) for purchasing seasonal products for the holiday. This support will be provided through excellent market merchant associations recommended by local governments until May 31. The funds will be delivered from the Korea Inclusive Finance Agency to individual merchants via these merchant associations.

Loans for the general public maturing during the Lunar New Year holiday (February 24?27) will have their maturity extended to the next business day, February 28. Loan repayment or maturity adjustment can be made on that day, and no separate late payment interest will be charged upon repayment. If loans are repaid before the holiday, early repayment without prepayment fees can be arranged on the last business day before the holiday (February 23) in consultation with the financial company.

In cases where payment dates for housing pensions or deposits fall during the Lunar New Year holiday, payments will be prioritized on February 23 as much as possible. Financial company deposits will be paid on February 28, including interest accrued during the holiday. If card, insurance, or telecommunications payment dates fall during the holiday, withdrawals will be made on February 28, and investors who sold stocks on February 22 will receive their proceeds on February 28 instead of February 24.

Furthermore, to alleviate financial difficulties of small and medium-sized merchants during the Lunar New Year holiday, the payment cycle for merchant settlements related to card usage will be shortened. Approximately 350,000 small and medium-sized merchants with annual sales between 500 million and 3 billion KRW will receive their merchant settlements earlier around the holiday.

In response to the cash needs of returning travelers, the financial authorities will operate 14 mobile bank branches at train stations and highway rest areas during the Lunar New Year holiday, providing deposit, withdrawal, and new bill exchange services. Additionally, 33 flexible bank branches will be set up at major stations, airports, and areas with high concentrations of foreign workers during the holiday. For information on mobile branches, flexible branches, and financial livelihood support, inquiries can be made to the call centers operated by each bank.

Provided by the Financial Services Commission

This content was produced with the assistance of AI translation services.