Financial Sector to Provide Special Funds of 95 Trillion Won to SMEs During Lunar New Year Holiday

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A total of 95 trillion won in funds will be supplied to domestic small and medium-sized enterprises (SMEs) and mid-sized companies around this year's Lunar New Year holiday.

On the 19th, the Financial Services Commission announced that financial support will be provided to ensure that vulnerable sectors receive funding and that there are no inconveniences in using financial services before and after the Lunar New Year holiday.

Industrial Bank of Korea, Korea Development Bank, Korea Credit Guarantee Fund, and others will support special loans and guarantees totaling 15.2 trillion won for SMEs and mid-sized companies. The support period is from December 30 of last year to February 14 of next month, covering the Lunar New Year holiday.

During the same period, banks will supply loans totaling 79.4 trillion won (32 trillion won in new loans and 47.4 trillion won in maturity extensions) to SMEs and small business owners, reflecting preferential interest rates based on transaction contribution and credit ratings.

The Korea Inclusive Finance Agency will provide 5 billion won in special funds through merchant associations to help traditional market merchants meet the demand for purchasing peak-season goods ahead of the Lunar New Year holiday.

If the repayment due date for financial company loans falls during the Lunar New Year holiday, the maturity will be automatically extended to the 31st without overdue interest. If loans are repaid early, early repayment on the 24th can be made without prepayment fees by consulting with the financial company.

If the card payment due date falls during the holiday, automatic withdrawal will be made on the 31st without late fees, and automatic payments for insurance premiums and utility bills will also be postponed to the 31st.

The card industry will pay merchant fees up to 7 days earlier around the Lunar New Year holiday to 460,042 small card merchants. The Korea Housing Finance Corporation will pay housing pension customers whose payment dates fall during the holiday in advance on the 24th, the day before the holiday.

A financial authority official explained, "If large sums of money are needed during the Lunar New Year holiday for real estate transactions or inter-company payments, funds should be withdrawn in advance or transfer limits should be increased beforehand via internet banking to enable transfers. Since foreign currency remittances and cross-border payments are difficult to process normally, it is necessary to check with the transaction bank in advance or adjust the transaction date."

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