Banks to Supply 78 Trillion Won for Chuseok... Mobile and Flexible Branches Also Operated

The financial sector is launching large-scale policy financing and fund supply to help small and medium-sized enterprises (SMEs) and mid-sized companies overcome financial difficulties during the Chuseok holiday. Additionally, various measures will be implemented to ensure that the public does not experience inconvenience in using financial services during the holiday period.

On the 21st, about a week before the Chuseok holiday, Mangwon Market in Mapo-gu, Seoul, is bustling with people looking to purchase ritual items. Photo by Jo Yongjun jun21@

According to the financial sector on the 24th, policy financial institutions (Korea Development Bank, Industrial Bank of Korea, Korea Credit Guarantee Fund) will support a total of 21.3 trillion KRW in special loans and guarantees until October 15. The Korea Development Bank will provide a total of 4 trillion KRW (2.3 trillion KRW new loans, 1.7 trillion KRW extensions) for working capital through consultations and screenings at branches, and will also offer interest rate reductions of up to 0.6 percentage points.

In addition, the Industrial Bank of Korea will lend up to 300 million KRW per company for working capital and provide interest rate reductions of up to 0.3 percentage points for settlement-type loans, supplying a total of 9 trillion KRW (3.5 trillion KRW new loans, 5.5 trillion KRW extensions). The Korea Credit Guarantee Fund will also provide guarantees totaling 8.3 trillion KRW (1.8 trillion KRW new, 6.5 trillion KRW extensions).

The banking sector will supply loans totaling 78.4 trillion KRW (31.3 trillion KRW new loans, 47.1 trillion KRW extensions) to meet the funding needs of SMEs before and after the holiday. Since support periods vary by bank, customers are advised to check schedules in advance and visit branches for special Chuseok holiday fund support consultations.

Consumer convenience in financial use during the holiday will also be enhanced. The card industry plans to pay merchant fees up to 7 days earlier for small and medium-sized card merchants. For 444,000 small merchants with annual sales between 500 million and 3 billion KRW, card payment amounts incurred during the holiday will be promptly paid without requiring separate applications.

Furthermore, if loan repayment due dates fall during the Chuseok holiday, the maturity will be automatically extended to October 4 without overdue interest. Consumers wishing to repay loans early can negotiate with financial companies to repay early by the 27th without prepayment penalties.

Also, if housing pension or deposit payment dates fall during the holiday, payments can be made early on the 27th, just before the holiday. The Korea Housing Finance Corporation plans to pay pensions on the 27th to all customers whose housing pension payment dates fall during the holiday. All financial institutions, including banks, will refund deposits maturing during the holiday on October 4, including interest accrued during the holiday. However, depending on the product, payments can also be made on the 27th upon customer request.

If stock sale payment dates fall during the holiday, payments will be postponed to October 4-5, immediately after the holiday. For bonds (general bonds, Repo), gold, and emission rights sold on the 27th, just before the Chuseok holiday, where the settlement deadline is the same day as the trade date, the payment can be received on the same day.

Meanwhile, the financial sector plans to operate 10 mobile branches at highway rest areas and 12 flexible branches at airports and areas with high concentrations of foreign workers to facilitate urgent financial transactions during the holiday.

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