Temporary Holiday (17th) Approaching Loan Maturity, One-Day Automatic Extension Without Late Interest

Financial Services Commission Provides Precautions for Temporary Holiday Designation
Prepare in Advance for Large Transactions on the Day, Including Withdrawals

[Asia Economy Reporter Kim Hyo-jin] With the designation of the 17th as a temporary holiday, the due dates for loan repayments at financial institutions such as banks, insurance companies, savings banks, and card companies falling on that day will be extended to the following day, the 18th, without any late interest charges, just like other holidays.

The Financial Services Commission announced on the 9th that this measure will be implemented as the financial market will be closed and most financial institutions will not operate on the 17th.

Financial Services Commission

Depending on the subscribed product, customers who wish may negotiate with financial institutions to repay loans before Gwangbokjeol (the 15th). If depositors want to withdraw deposits early, it is also possible to withdraw on the 14th.

Customers planning to withdraw redemption proceeds around the 17th should check the redemption schedule in advance by contacting the sales company or reviewing the investment prospectus, as the redemption dates vary by fund.

For example, in the case of domestic equity funds, redemption requests generally must be submitted before 3:30 PM on the 11th to receive the redemption proceeds on the 14th.

If the payment date for card, insurance, or telecommunications usage fees falls on the 17th, the amount will be withdrawn from the customer's account on the 18th unless there is a separate agreement.

For those wishing to receive insurance payments around the 17th, it is advisable to inquire in advance or check the terms and conditions, as payment schedules vary depending on the type of insurance.

If a large amount of money is needed on the 17th for real estate contracts (such as final payment for sales or jeonse deposits) or inter-company payment settlements, funds should be withdrawn in advance or transfer limits should be raised beforehand to enable transfers via internet banking on the day.

Since foreign currency remittances and international payment settlements are also likely to be difficult to process normally due to financial institutions’ closure, it is necessary to check with the bank in advance or adjust the transaction date with the counterparty beforehand.

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