Financial Services Commission Provides 19.3 Trillion KRW in Loans and Guarantees to SMEs and Mid-sized Companies During Chuseok Holiday

[Asia Economy Reporter Jin-ho Kim] The Financial Services Commission announced on the 13th that it will provide special loans and guarantees totaling 19.3 trillion KRW through policy financial institutions during the Chuseok holiday. This amount is 2.8 trillion KRW higher than the previous year.

Industrial Bank of Korea will newly support working capital of up to 300 million KRW per small and medium-sized enterprise (SME). The total supply amount for working capital purposes such as raw material payments, employee salaries, and bonuses is 3 trillion KRW. For settlement-type loans, a 0.3 percentage point interest rate reduction benefit will also be provided. Korea Development Bank will supply 2.2 trillion KRW in working capital to SMEs and offer an interest rate reduction benefit within a maximum range of 0.4 percentage points.

Credit Guarantee Fund will provide guarantees worth 7 trillion KRW to respond to the expected increase in required funds before and after Chuseok. This includes 1.5 trillion KRW in new guarantees and 5.5 trillion KRW in maturity extensions.

Additionally, for small card merchants, payment for merchant proceeds will be made 3 days earlier. For 370,000 small merchants (annual sales between 500 million and 3 billion KRW), card payment proceeds generated during the Chuseok holiday will be promptly paid without a separate application.

Payment dates for card, insurance, telecommunications usage fees, and stock trading proceeds will be postponed to the 23rd, after the Chuseok holiday. For example, if stocks were sold on September 17, the proceeds originally scheduled to be received on September 21 will be deposited on the 24th considering the Chuseok holiday.

Loans maturing during the Chuseok holiday will have their maturity automatically extended to the 23rd. Pensions scheduled to be paid during the holiday will be paid earlier on the 17th. Deposits can be withdrawn from the 23rd, including interest accrued during the Chuseok holiday.

Furthermore, the financial sector plans to operate mobile and flexible branches at highway rest areas and airports to support customers’ urgent financial transactions during the holiday. Services such as currency exchange and remittance will also be supported in 15 areas with a high concentration of foreign workers.

In addition, to prepare for security incidents during the Chuseok holiday, a rapid response system will be maintained among financial authorities, the Financial Security Institute (Integrated Security Control Center), and financial companies. Financial companies are advised to thoroughly check internal control status and action plans for various failure situations to prevent financial accidents in advance.

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