[Q&A] "Loan Maturity on the 17th (Temporary Holiday)? Automatically Extended to the 18th"

Financial Services Commission Provides Precautions for Temporary Holiday Designation
Prepare in Advance for Large Transactions on the Day, Including Withdrawals

[Asia Economy Reporter Kim Hyo-jin] With June 17 designated as a temporary holiday, loan maturities at financial companies such as banks, insurance companies, savings banks, and card companies that fall on that day will be extended to the next day, June 18, without any late interest charges, just like other holidays.

The Financial Services Commission announced on the 9th that this measure will be implemented as the financial market will be closed and most financial companies will not operate on the 17th.

If funds are needed on that day for real estate transactions or inter-company payments, it is necessary to withdraw in advance or increase the internet banking transfer limit.

Financial Services Commission

Below are Q&A on key points.

Q: If a loan matures on the 17th, when should the loan be repaid?

A: Loans maturing on the 17th at financial companies (banks, insurance, savings banks, card companies, etc.) and stock margin trading amounts will be automatically extended to the 18th, so repayment on the 18th will be treated as normal without delinquency. If the maturity falls on a holiday, early repayment is usually possible without prepayment fees, so if desired, early repayment (e.g., August 14) can be made after confirming with the financial company in advance.

Q: If the interest payment date is on the 17th, will failure to pay interest on that day be treated as delinquency?

A: The interest payment date is also automatically extended to the 18th, so payment on the 18th will be processed normally.

Q: When can deposits maturing on the 17th be withdrawn?

A: Deposits maturing on the 17th at financial companies can be withdrawn on the 18th including the interest for that day. Depending on the product, withdrawal may also be possible on the previous business day (14th) upon the depositor's request.

Q: When will card payment amounts and automatic payments on the 17th be processed?

A: If the card payment due date falls on a holiday, it will be postponed to the next business day, so payment will be withdrawn or can be paid directly on the 18th. Automatic payments can also be withdrawn on the 18th unless there is a separate agreement.

Q: If promissory notes, checks, or electronic payment instruments mature on the 17th, when can they be cashed? Is issuance or transactions possible on that day?

A: Cashing of promissory notes, checks, and inter-company electronic payment instruments maturing on the 17th is possible on the next business day, the 18th. Face-to-face transactions such as issuance and endorsement of paper promissory notes and demand checks are possible on the 17th, but transactions involving electronic promissory notes, inter-company electronic payment instruments, and issuance of cashier's checks at bank counters are not possible.

Q: What should be done if large funds are needed on the 17th for real estate transactions, large corporate payments, or foreign currency remittances?

A: If large fund transactions are needed, it is necessary to change the transaction date with the counterparty in advance or take measures such as prior withdrawal of funds and increasing internet banking transfer limits. Currency exchange and remittance transactions through branches are not possible on the 17th, so it is necessary to adjust the transaction date in advance.

Q: Can fund redemption proceeds be received on the 17th?

A: Temporary holidays are excluded from business days defined in fund collective investment regulations (terms), so payment cannot be received on the 17th. Therefore, if there is a plan to withdraw redemption proceeds around that day, it is advisable to check the schedule in advance by contacting the sales company.

Q: When can redemption payments for ELS and DLS scheduled for repayment on the 17th be received?

A: ELS and DLS scheduled for repayment on the 17th will have their redemption payments made on the 18th.

Q: When will settlement payments for stocks and bonds sold before the 17th be received?

A: If the settlement payment date is the 17th, payment will be postponed to the next business day, the 18th.

Q: Can monthly housing pension payments be received on the 17th?

A: If the payment date falls during the holiday period from the 15th to the 17th, payment will be made on the 14th. Customers who need a lump sum withdrawal during the holiday can visit the Korea Housing Finance Corporation by the 13th to apply and receive payment on the 14th.