Deposit and pension payments made in advance for Chuseok... Loan repayments postponed until after Chuseok

Card Payment Amounts Also Withdrawn After Chuseok

[Image source=Yonhap News]

[Asia Economy Reporter Kim Min-young] During the Chuseok holiday period, deposits and pensions can be received in advance, while loan repayments due and credit card payment withdrawals will be postponed until after Chuseok.

The Financial Services Commission and financial sector announced these Chuseok holiday public financial support measures on the 21st.

First, if the payment date for deposits, retirement pensions, or housing pensions falls during the Chuseok holiday period, payments will be made on the previous business day (the 29th) as much as possible.

The Korea Housing Finance Corporation will prepay the housing pension payments on the 29th for all customers whose payment dates fall during the Chuseok holiday.

Deposits at financial companies maturing between September 30 and October 4 will be paid on the 5th of next month, including interest accrued during the holiday, and if requested by customers, payments can also be made on the 29th in consultation with the financial institutions.

Loans maturing during the holiday period can be repaid early or have their maturity adjusted. There are no fees. Loans maturing during the holiday will have their maturity extended to the 5th of next month.

Also, credit card payments will be automatically withdrawn from customer accounts on the 5th of next month without late fees, or customers can pay directly. If customers wish, early payment of credit card bills can be made on the 29th. Scheduled automatic payments such as insurance premiums and communication fees will also be withdrawn on the 5th of next month.

[Image source=Yonhap News]

Each bank will operate mobile and flexible branches. Two mobile branches will be operated at highway rest areas, providing services such as deposits, withdrawals, and new bill exchanges to customers. Flexible branches will be operated at 22 locations including major airports and areas with a high concentration of foreign workers, offering deposit, withdrawal, remittance, and currency exchange services.

In addition, support will be provided to overcome the novel coronavirus disease (COVID-19). The Financial Services Commission announced that a total of 16.5 trillion won in special fund loans and guarantees will be provided through policy financial institutions.

IBK Industrial Bank will support working capital up to 300 million won per company. KDB Industrial Bank will newly supply 1.6 trillion won in working capital. The Korea Credit Guarantee Fund will provide 5.4 trillion won in guarantees to prepare for increased funding needs such as payment settlements and bonus payments expected around Chuseok. The Financial Services Commission stated, “We will simplify the screening process and offer preferential treatment for guarantee fees, guarantee ratios, and guarantee limits by utilizing the COVID-19 damage support guarantee system.”

For about 370,000 small and medium-sized card merchants (with annual sales between 500 million and 3 billion won), payments will be made up to 6 days earlier. This is to support the resolution of funding difficulties for small merchants. Without separate applications, merchant payments will be advanced during the period before and after the holiday (from the 24th to October 4th) to alleviate liquidity difficulties for self-employed business owners.

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