Financial Authorities Provide Financial Support for Wildfire Damage and Recovery

[Asia Economy Reporter Song Hwajeong] Financial authorities will provide financial support such as loan repayment deferrals, maturity extensions, and prompt insurance payouts in response to the wildfire that occurred in Uljin-gun, Gyeongsangbuk-do.

On the 5th, the Financial Services Commission announced that it has proactively prepared financial support measures to promptly resolve urgent funding difficulties for farmers, fishermen, and small and medium-sized enterprises in the disaster area and to support rapid recovery.

Support will be provided through the subscribed insurance companies for prompt payment of disaster-related insurance claims and deferral of insurance premium payments. If a disaster damage confirmation certificate is issued, insurance payouts will be advanced up to 50% of the estimated insurance amount before the completion of damage investigation. In addition, insurance premium payments and loan principal and interest repayments will be deferred for insured persons who have suffered severe disaster damage. If affected residents and businesses apply for insurance policy loans, prompt loan disbursement will be ensured.

Policy financial institutions such as the Korea Development Bank, Industrial Bank of Korea, Korea Credit Guarantee Fund, and Korea Agriculture and Fisheries Credit Guarantee Fund will defer repayments and extend maturities up to one year for existing loans and guarantees to affected companies and individuals for a certain period.

For loans principal and interest of affected companies and individuals from commercial banks, savings banks, and mutual finance cooperatives (Nonghyup, Suhyup, Shinhan, and Forest Cooperatives), repayment deferrals, installment repayments, and maturity extensions will be encouraged for a certain period.

Credit card companies will voluntarily support deferrals of credit card payment claims, installment repayments, and repayment deferrals for cash advances and card loans for affected individuals.

Additionally, if a disaster damage confirmation certificate is issued by local governments or disaster recovery fund support decisions are made by the government or local governments, special guarantees from the Korea Credit Guarantee Fund and Korea Agriculture and Fisheries Credit Guarantee Fund will also be supported.

The Financial Supervisory Service will comprehensively consult on financial difficulties in the wildfire-affected areas through the 'Financial Counseling Center' and provide guidance on support measures. For insurance, a rapid support system will be established through the Insurance Association’s permanent support team to provide insurance subscription inquiries and insurance accident consultations.

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