What About Bank Services on Substitute Holidays?..."Loan Maturity Extended by One Day"

[Image source=Yonhap News]

If the maturity date of a loan from a financial company falls on the substitute holiday for Buddha’s Birthday on the 29th, the maturity date will be extended by one day to the next day. Most financial institutions will not operate on this day.

According to the Financial Services Commission and the Financial Supervisory Service, if the maturity date of loans from banks, insurance companies, savings banks, or card companies is on the 29th, the maturity date will be extended to the 30th without any overdue interest. If the interest payment date falls on the 29th, the interest payment date will be automatically extended to the 30th, so paying interest on the 30th will be considered a normal payment.

If the maturity date of a deposit is on the 29th, the maturity date will also be automatically extended to the next day. Deposit interest will be calculated based on the agreed interest rate as of the 29th.

If the payment date for card, insurance, or telecommunications usage fees is on the 29th, the withdrawal date will be changed to the next day. The usage fees will be withdrawn from the account on the 30th. However, if there is a separate agreement between the billing institution and the paying customer, withdrawal may occur on a different business day. Automatic payment scheduled for withdrawal on the 29th can also be withdrawn on the next business day, the 30th.

Cash conversion of bills, checks, and electronic payment methods between companies maturing on the 29th will also be possible on the next business day, the 30th. Issuance and endorsement of promissory notes (paper) and demand checks, which are face-to-face transactions between parties, are possible, but transactions involving electronically issued electronic promissory notes, electronic payment methods between companies, and issuance of cashier’s checks through bank counters are not possible.

The payment date for settlement of stocks, bonds, and other securities will also be postponed to the 30th. The settlement deadline for stock trading is two business days from the trading day. For example, an investor who sold stocks on the 25th will receive payment on the 30th, and an investor who sold stocks on the 26th will receive payment on the 31st.