Financial Sector Provides Special Loans and Maturity Extensions for Heavy Rain Damage Areas... Authorities Activate Comprehensive Support System

Company-wide Support from Major Financial Groups

Reference image (Yonhap News)

[Asia Economy Reporter Kim Hyo-jin] Financial institutions continue to support residents and businesses in areas affected by heavy rain damage. Financial authorities have launched a comprehensive support system involving all financial sectors.

According to the financial sector on the 15th, KB Financial Group recently raised a total of 500 million KRW in donations and delivered it to the 'National Disaster Relief Association.' The donations will be used for disaster relief supplies and recovery projects in the affected areas.

KB Kookmin Bank is providing special loans for damage recovery. Individual victims can use up to 20 million KRW as emergency living stabilization funds, and small and medium-sized corporations and self-employed individuals can borrow up to 500 million KRW in operating funds. A preferential interest rate of up to 1.0 percentage point is applied.

Shinhan Bank is providing 100 billion KRW in financial support to small and medium-sized enterprises and individuals. Shinhan Card is implementing measures such as deferring card payment claims, applying installment payments, and reducing interest, late fees, and service charges for customers affected by the flood damage.

Shinhan Life and Orange Life will also defer insurance premium payments and insurance contract loan interest for up to six months for affected customers and will strive to pay accident insurance claims as quickly as possible.

Woori Financial Group collected 100 million KRW in donations for heavy rain damage recovery and provided disaster relief kits (blankets, underwear, hygiene products, daily necessities) to about 400 households of disaster victims in Chungbuk and Gangwon regions. Woori Bank will provide a total of 200 billion KRW in financial support until the 29th of next month to ease the burden of facility restoration and financial costs for disaster victims.

Woori Card will assist affected residents by deferring payment amounts for up to six months and exempting interest on overdue payments arising after the heavy rain damage.

Hana Bank will support customers such as affected residents and businesses with new emergency management stabilization funds of up to 500 million KRW per company without limit on credit lines. When existing loans mature, the principal repayment can be extended for up to one year without repayment. Hana Card will defer credit card billing for usage amounts (lump sum, installments, card loans, cash services) for one to six months upon application from customers affected by the heavy rain damage.

NH Nonghyup Bank is conducting a relay of disaster recovery support across all departments of the central headquarters and nationwide sales headquarters to support farms affected by the heavy rain. Accordingly, NH Nonghyup Bank provides damage recovery loans with preferential interest rates of up to 1.6 percentage points for corporate funds up to 500 million KRW and household funds up to 100 million KRW to affected farmers and small and medium-sized enterprises.

Full-scale Financial Support Including Loans and Preferential Interest Rates
Financial Authorities Establish Comprehensive Financial Support Center

The Financial Services Commission and the Financial Supervisory Service have launched the Comprehensive Financial Support Center for Heavy Rain Damage Areas (Support Center), involving all financial sectors, to facilitate smooth financial support for residents and businesses in affected areas.

Through the Support Center, the financial authorities plan to comprehensively counsel residents and businesses in affected areas on financial difficulties by linking banks, insurance, and microfinance sectors based on the Financial Supervisory Service’s 11 nationwide support bases, provide guidance on financial support programs, and offer necessary support in a one-stop manner.

Additionally, the financial authorities plan to form 'Dedicated Support Teams for Damage Sites' at each Financial Supervisory Service support base to visit major affected areas, assess damage status and difficulties, and implement customized support.

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