Financial Services Commission Extends Loan Maturities for Companies and Flood Victims Affected by Heavy Rainfall

Loan and Guarantee Repayment Deferral and Maturity Extension
Prompt Insurance Payment and Premium Payment Deferral
Special Guarantee for Disaster Recovery Fund Support

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[Asia Economy Reporter Jo Gang-wook] Financial authorities are providing financial support such as loan maturity extensions, special guarantees, and insurance premium payment deferrals to companies and flood victims affected by the recent heavy rains.

The Financial Services Commission and the Financial Supervisory Service announced on the 4th that, in response to the recent heavy rains that struck the Seoul metropolitan area and central regions, they have prepared and will implement financial support measures to resolve urgent funding difficulties and support the rapid recovery process.

According to these financial support measures, policy financial institutions such as the Korea Development Bank, Industrial Bank of Korea, and Korea Credit Guarantee Fund (KODIT) will defer repayment and extend maturities for up to one year on existing loans and guarantees for affected companies and individuals. Commercial banks will also be encouraged to provide repayment deferrals or maturity extensions on principal and interest payments for loans to affected companies and individuals.

Support will be provided for prompt payment of disaster-related insurance claims and deferral of insurance premium payments through subscribed insurance companies. For disaster-related insurance, if a disaster damage confirmation certificate is issued by local governments, insurance payments will be made early within 50% of the estimated insurance amount even before the damage investigation is completed. Additionally, insured persons who suffered severe heavy rain damage will be allowed to defer insurance premium payments and loan principal and interest repayments. Furthermore, if affected residents and companies apply for insurance policy loans, the loan funds will be disbursed promptly within 24 hours.

KODIT and the Korea Federation of Community Credit Cooperatives will support recovery funds through special guarantees. Eligible cases include those who have received disaster damage confirmation certificates from local governments or decisions on disaster recovery fund support from the government or local governments. KODIT will provide special guarantees for disaster-affected small and medium enterprises with a guarantee ratio of 90%, a fixed guarantee fee rate of 0.5%, and a combined working and facility fund limit of up to 300 million KRW. The Korea Federation of Community Credit Cooperatives will fully guarantee disaster-affected farmers and fishermen’s agricultural and fishery organizations with a simplified credit investigation applied within a limit of 300 million KRW.

The Financial Supervisory Service plans to comprehensively consult and guide financial difficulties in typhoon-affected areas through the Financial Counseling Center (phone number 1332). In particular, for insurance, a rapid support system will be established through the Insurance Association’s permanent support team to provide services such as insurance subscription inquiry and insurance accident consultation.

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