"Will it be a welcome rain in a drought?"... Policy finance and banking sectors supply 103 trillion won to small business owners and SMEs ahead of Chuseok

[Financial News] Policy financial institutions and the banking sector will provide a total of 103 trillion won to small business owners and SMEs ahead of the Chuseok holiday.
According to the Financial Services Commission on the 13th, policy financial institutions will provide 23 trillion won in loans and guarantees to meet the funding needs of micro-enterprises and SMEs. KDB Industrial Bank and IBK Industrial Bank will supply 3.7 trillion won and 9.2 trillion won, respectively, as working capital. KDB and IBK will also offer interest rate reductions of up to 0.4%p and 0.3%p, respectively, on settlement loans.
The Korea Credit Guarantee Fund will provide 10.1 trillion won in guarantees and streamline the screening procedures for special guarantee and preferential guarantee programs. It will also offer preferential treatment regarding guarantee fees, guarantee ratios, and guarantee limits. Applications for support can be made through special fund support consultations at each branch, and the support period runs until the 12th of next month.
The banking sector also plans to provide a total of 79.6 trillion won in loans to small business owners and SMEs. Preferential interest rates will be applied based on transaction contribution and credit rating, and the support period for the four major banks runs until the 16th of next month. Anyone eligible can apply at any bank branch.
The Korea Inclusive Finance Agency is providing 5 billion won in holiday funds through merchant associations to meet the demand for purchasing seasonal goods among traditional market merchants. Traditional market merchants can access small loans of up to 10 million won at an annual interest rate of no more than 4.5% through merchant associations during the two months prior to the Chuseok holiday.
Financial authorities are providing support for the convenience of financial services during the Chuseok holiday period, including the automatic extension of loan and utility bill repayment maturities, early payment of matured deposits, and the operation of mobile and flexible branches for urgent financial transactions. If payment due dates for loans, credit card bills, insurance premiums, telecommunication fees, and utility bills fall during the Chuseok holiday, they will be automatically extended to September 28 or withdrawn without late payment interest. For stock trading proceeds, if the payment date falls during the holiday period under the T+2 settlement method, it will be postponed from September 28 to the 30th.
The Financial Services Commission advised that those requiring large sums of money during the holiday period, such as for real estate transactions or inter-company payments, should withdraw funds in advance or increase their internet banking transfer limits. It also advised that since the normal processing of foreign currency remittances and cross-border payments may be difficult, one should verify with the bank beforehand or adjust the transaction date. Furthermore, it stated that payment schedules for fund redemptions and insurance claims before and after the Chuseok holiday may vary by product, so payment dates should be checked in advance through the financial institution or terms and conditions.
The Financial Services Commission also requested caution regarding text message scams impersonating holiday gift deliveries or traffic violation fines. It explained that if urgent funds are needed for living expenses, people should prioritize government and local government-supported loans, such as policy-based microfinance products; when using lending companies, they must verify whether the company is legally registered with the government; and they should be wary of damages from illegal private lending, such as high-interest loans exceeding 20% ​​per year or illegal debt collection.
An official from the Financial Services Commission stated that they plan to maintain a rapid response system among the Financial Services Commission, the Financial Supervisory Service, the Financial Security Institute's Integrated Security Control Center, and financial companies to prepare for security breaches during the Chuseok holiday.
[email protected] Park Mun-su Reporter