Financial Sector Provides Emergency Living Funds and Financial Support for Typhoon Damage

[Asia Economy Reporter Song Hwajeong] The financial sector is providing emergency living funds and support for extending loan maturities and deferring repayments for households and small business owners affected by the typhoon.

According to the Financial Services Commission and the Financial Supervisory Service on the 6th, the financial sector will offer financial support to households affected by the typhoon.

First, emergency living funds will be provided to customers affected by the typhoon. NongHyup offers interest-free emergency living funds of up to 10 million KRW per household to affected agricultural cooperative members. Suhyup provides emergency living fund loans of up to 20 million KRW per person to customers who can prove damage.

Extensions of existing loan maturities and repayment deferrals will also be granted. Banks, savings banks, insurance companies, and card companies will support typhoon-affected households with loan principal and interest maturity extensions, repayment deferrals, and installment repayments for a certain period (6 months to 1 year).

In the life and non-life insurance sectors, the priority for reviewing and paying insurance claims from typhoon-affected customers will be raised, and early payment of insurance benefits will be provided. When issuing disaster damage confirmation certificates, early payments will be made within 50% of the estimated insurance amount before the damage investigation is completed. Additionally, the obligation to pay insurance premiums for typhoon-affected customers will be deferred for up to 6 months, and loan applications on insurance contracts will be promptly disbursed.

Card companies will defer credit card payment claims for typhoon-affected customers for up to 6 months. Some card companies offer additional support such as installment repayments after the deferral period ends (Shinhan Card), reduction of late fees incurred after the typhoon (Hyundai Card), and deferral of collection of overdue amounts (Lotte Card, Woori Card).

Special debt adjustments for overdue debts will also be supported. Individuals who have overdue debts due to typhoon damage can apply for special debt adjustment through the Credit Recovery Committee. Unlike general debt adjustments, additional benefits such as interest-free repayment deferrals (up to 1 year) and preferential debt reductions (fixed at 70%) will be provided.

Policy financial institutions such as the Korea Development Bank and Industrial Bank of Korea, as well as banks and mutual finance sectors, will support affected companies and small business owners with funds needed for recovery and emergency operating funds, and will provide extensions of maturities and repayment deferrals for existing loans for up to 1 year. The Industrial Bank of Korea plans to provide emergency operating funds up to 300 million KRW, and the Korea Development Bank will provide funds within the limit per company. The Korea Credit Guarantee Fund will support special guarantees when affected companies and small business owners apply for recovery fund loans from financial institutions and will extend guarantee maturities for up to 1 year for guarantee products currently used by affected companies and small business owners.

To apply for financial support, applicants must first obtain a disaster damage confirmation certificate issued by local governments and bring it with them. Even if eligible, the availability and conditions of support may vary by financial institution, so applicants should first inquire about support details with the relevant financial institution or sector association.

A Financial Services Commission official said, "The financial authorities plan to support those affected by this typhoon to quickly receive the necessary funds and return to their daily lives."

The Financial Services Commission, Financial Supervisory Service, related financial institutions, and sector associations established the "Comprehensive Financial Support Center for Typhoon-Affected Areas" on the 5th and plan to operate it continuously until the situation stabilizes. Additionally, the Financial Supervisory Service has temporarily expanded the "SME Financial Difficulty Counseling Center" to form "On-site Dedicated Support Teams" at support bases (Busan·Ulsan, Gyeongnam, Jeju, Daegu·Gyeongbuk, Gwangju·Jeonnam, Daejeon·Chungnam, Incheon, Jeonbuk, Gangwon, Chungbuk, Gangneung) to provide one-stop customized support jointly with the financial sector. Sector associations have established "Typhoon Damage Support Centers" to consult and guide necessary support within their sectors and coordinate with financial companies. Each financial company will operate "Dedicated Support Desks for Affected Companies" at branches in the Hinamno-affected areas to ensure faster consultation and support.

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