"Apply for Second Emergency Loans and Disaster Relief Funds at Banks"

Emergency Loans for Small Business Owners Available from the 18th at 7 Banks
Disaster Relief Funds Can Be Applied for at 6,500 Locations of 14 Banks Nationwide

The government's emergency disaster relief fund credit and debit card recharge application began at 7 a.m. on the 11th through the websites of nine card companies. Similar to the public mask 5-day rotation system, a day-of-the-week system is applied for applications, and from the 16th, applications can be made at any time. The support fund amounts are 400,000 KRW for single-person households, 600,000 KRW for two-person households, 800,000 KRW for three-person households, and 1,000,000 KRW for households of four or more. The photo shows a citizen visiting a community center in Jongno-gu, Seoul, looking at a banner with information about the support fund. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Kim Min-young] From the 18th, banks will begin accepting applications for the second round of emergency loans for small business owners (individual entrepreneurs) and for receiving the government’s emergency disaster relief fund via credit and debit cards. The banking sector expects that customers aged middle-aged and above, who are less familiar with online services, will flock to bank counters.

According to financial authorities and banks on this day, all branches of Shinhan, KB Kookmin, Hana, Woori, NH Nonghyup, IBK Industrial Bank, and DGB Daegu Bank will start pre-accepting applications for the second round of financial support loans for small business owners, totaling 10 trillion won.

Among these, Shinhan, Kookmin, Hana, Woori, and Nonghyup banks also allow online applications.

Other regional banks such as those in Busan, Gyeongnam, Gwangju, Jeonbuk, and Jeju are expected to offer the service from mid-next month after their IT systems are completed.

However, those who received the first round of small business loans, those with overdue national or local taxes, and existing debt defaulters are excluded from this loan program.

Unlike the first round, this time banks will handle both guarantees and loan processing, so applicants do not need to visit the Korea Credit Guarantee Fund separately. This loan is 95% guaranteed by the Korea Credit Guarantee Fund.

The loan limit is up to 10 million won, with a maturity of 5 years (2 years grace period and 3 years installment repayment). The interest rate is basically 3-4% per annum and may vary depending on credit rating.

A financial sector official said, “Applying for a loan at the bank you usually use may be more advantageous in terms of credit evaluation and interest rates, so it is better to visit your transaction bank to apply.”

To apply for the loan, applicants must prepare six documents: business registration certificate, VAT taxable standard certificate, national and local tax payment certificates, real estate registry or lease contract, income certificate, among others. However, additional documents may be requested depending on each bank’s loan screening criteria.

This week is only for application submission, and loan and guarantee screening will begin on the 25th, so actual loans are expected to proceed as early as the end of this month.

On this day, over 6,500 branches of 14 banks will also accept applications for the emergency disaster relief fund. Card companies affiliated with banks such as Shinhan, Kookmin, Woori, Hana, and Nonghyup will accept applications at their respective financial group’s bank branches, while BC Card will accept applications at 15 affiliated financial institutions.

During the first week of branch applications, a 5-day rotation system will be applied, similar to online applications.

The schedule is as follows: on the 18th, those whose birth year ends with 1 or 6; on the 19th, 2 or 7; on the 20th, 3 or 8; on the 21st, 4 or 9; and on the 22nd, 5 or 0.

Whether to extend the 5-day rotation system will be decided later, considering the situation at bank counters.

Since both the second loan and disaster relief fund applications are conducted at branches, each bank is putting full effort into COVID-19 prevention. Staff greet customers behind transparent partitions while wearing masks. Hand sanitizers are placed throughout the premises, and machines frequently used by many customers, such as ATMs, are disinfected regularly.

A bank official said, “Customers not wearing masks are not allowed to enter, and social distancing is practiced within branches.” Another bank official added, “Since small business loans are credit operations and disaster relief fund applications are deposit and general services, the counters are different, so major congestion is unlikely.”

A financial sector official explained, “To minimize face-to-face contact, please prioritize online applications. Customers who wish to receive prepaid cards or gift certificates can apply at their local town, township, or neighborhood offices or through local government websites.”

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