Financial Authorities Form Emergency Response Team for Flood Damage... Prepare Financial Support Measures

The Financial Services Commission announced on the 12th that it has formed an emergency response team to restore flood damage and prepared financial support measures to ensure that flood-affected citizens can quickly receive the necessary funds and return to their daily lives.

For flood-affected households, support measures include ▲emergency living stabilization funds ▲extension of existing loan maturities and repayment deferrals ▲insurance premium payment deferrals and expedited insurance claim payments ▲deferment of credit card payment billing ▲special debt restructuring for overdue debts.

The emergency living stabilization funds vary by bank and mutual finance institution. For example, KB Kookmin, Woori, Shinhan, and Suhyup Banks provide emergency living stabilization funds up to 20 million KRW for individual customers affected by the disaster; Hana Bank offers up to 50 million KRW; and NH Nonghyup Bank supports up to 100 million KRW within the range of the damage amount.

Additionally, the financial sector supports affected households with loan maturity extensions and installment repayments for a certain period (3 months to 1 year). Conditions vary by institution. Furthermore, insurance companies and credit card companies each defer insurance premium payment obligations and credit card payment obligations for up to 6 months.

For flood-affected small business owners and small and medium-sized enterprises (SMEs), support measures include ▲emergency business stabilization funds ▲extension of existing loan maturities and repayment deferrals ▲debt restructuring for overdue debts.

Policy financial institutions (Korea Development Bank, Industrial Bank of Korea), banks, and mutual finance institutions provide restoration funds and emergency operating funds to affected companies and small business owners. Korea Development Bank supports emergency operating funds within the limit per company, and Industrial Bank of Korea supports up to 500 million KRW for affected companies. The four major commercial banks (KB Kookmin, Shinhan, Woori, Hana) also provide emergency operating funds up to 500 million KRW for affected merchants and offer special preferential interest rates.

In addition, the Korea Credit Guarantee Fund and the Agricultural, Forestry and Fishery Credit Guarantee Fund provide special guarantee support when affected companies, small business owners, and disaster-affected farmers and fishermen apply for restoration fund loans from financial institutions.

Support is also provided for loan maturity extensions and repayment deferrals. Policy financial institutions (KDB, Korea Eximbank, Industrial Bank of Korea), banks, and mutual finance institutions support loan maturity extensions and repayment deferrals for up to one year on existing loans of affected companies and small business owners. The Korea Credit Guarantee Fund and the Agricultural, Forestry and Fishery Credit Guarantee Fund also extend guarantee maturities for up to one year on guarantee products used by affected companies, small business owners, and disaster-affected farmers and fishermen.

Furthermore, the authorities plan to open consultation centers within the Financial Supervisory Service for each support category to provide tailored on-site consultation services regarding loan execution and extensions for damage restoration. In particularly severely affected areas (Chungcheong and Jeonbuk), financial consultation personnel will be deployed on-site to ensure prompt financial support.

The Financial Services Commission stated, "Even after this announcement, we will continuously share flood damage situations during the rainy season through related ministries and local governments to ensure timely financial support and to make sure that affected citizens can tangibly feel the financial assistance. We will monitor the situation more closely."

Meanwhile, to apply for financial support, applicants must first obtain a disaster damage confirmation certificate issued by local governments. The disaster damage confirmation certificate can be obtained by visiting the relevant basic local government office (community service center, eup/myeon office, etc.) and submitting a completed damage confirmation form. The certificate can also be issued online through the National Disaster Safety Portal.

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