103 trillion won in funds supplied to small business owners and small and medium-sized enterprises during the Chuseok holiday

(Seoul = Yonhap News) Reporter Kim Ji-yeon = A total of 103 trillion won in funds will be supplied to small business owners and small and medium-sized enterprises in celebration of the Chuseok holiday.

The Financial Services Commission announced on the 13th that policy financial institutions and the entire financial industry provide funds to vulnerable sectors during the Chuseok holiday.

This consists of 23 trillion won in special loans and guarantees from policy financial institutions (support period from August 24 to October 12) and 79.6 trillion won in preferential interest rate loans from banks.

Korea Development Bank supplies a total of KRW 3.7 trillion (new KRW 2.2 trillion, extension KRW 1.5 trillion) for working capital purposes through branch consultation and screening, and also provides interest rate reduction benefits of up to 0.4 percentage points (p).

Industrial Bank of Korea [024110] will supply a total of 9.2 trillion won in funds, including 3.7 trillion won in new funds and 5.5 trillion won in extensions.

The Credit Guarantee Fund supplies a total of KRW 10.1 trillion (KRW 2.1 trillion in new + KRW 8 trillion in extensions) of guarantees. The screening process for special guarantees and preferential guarantee programs is simplified, and guarantee fees, guarantee ratios, guarantee limits, etc. are given preferential treatment.

The banking sector will provide 32.2 trillion won in new loans and 47.4 trillion won in extended maturity loans to small and medium-sized businesses, reflecting preferential interest rates based on transaction contribution and credit rating.

The support period is from August 24 to October 16 for the four major commercial banks. The support period varies slightly from bank to bank.

The Korea Inclusive Finance Agency provides a total of 5 billion won in holiday funds through the Merchants' Association to address the demand for purchases of sacred items from merchants in traditional markets ahead of the Chuseok holiday.

Traditional market merchants can use small loans of up to 10 million won at an interest rate of less than 4.5% per annum through the merchant association for two months before the Chuseok holiday (July 20 to September 23).

It also improves the convenience of consumer financial use.

If the repayment maturity date for loans from financial companies such as banks, insurance, savings banks, and credit cards falls during the Chuseok holiday (September 24 to 27), the maturity date is automatically extended to September 28 without overdue interest.

Card payments will also be automatically withdrawn on the 28th of this month without late fees. If the automatic payment date for insurance premiums, communication fees, or utility bills overlaps with a holiday, the withdrawal date is postponed until after the holiday.

Korea Housing Finance Corporation plans to pay housing pension in advance on the 23rd of this month to all customers whose housing pension payment date arrives during the Chuseok holiday period.

In addition, all financial companies plan to refund deposits maturing during the Chuseok holiday on the 28th, including interest during the Chuseok holiday. Depending on the product, if there is a customer request, payment is also possible on the 23rd.

If the payment date of the payment (T+2 payment) 2 days after selling the stock falls during the Chuseok holiday, it will be postponed to immediately after the holiday.

For example, the date of receiving the payment for selling stocks on the 23rd of this month is the 29th, after the holiday, not the 25th, two days later.

Considering the urgent need for financial transactions even during the Chuseok holiday, 12 banks will operate 11 mobile stores that allow deposits, withdrawals, and new credit exchanges at highway rest areas, etc., and 11 flexible stores that can exchange currency and remit money, etc. in airports and areas where foreign workers are concentrated.

Meanwhile, the Financial Services Commission warned, “Beware of text scams impersonating public institutions, such as impersonating holiday gift delivery or imposing fines for violating traffic laws, around the Chuseok holiday.”