KDB, KIE 등 Policy Financial Institutions Provide Special Loans of 21.8 Trillion Won
Bank Sector Supplies 78.8 Trillion Won in Preferential Interest Loans
Card Merchant Payments and Housing Pensions Paid in Advance Before Holidays
21 Mobile and Flexible Branches Operate During Holiday Period
The government will proactively support small and medium-sized enterprises (SMEs) and mid-sized companies with special loans and guarantees totaling 21.8 trillion KRW through policy financial institutions to prepare for the expected increase in funding needs before and after the Chuseok holiday. The banking sector will also provide loans totaling 78.8 trillion KRW to SMEs and small business owners, reflecting preferential interest rates based on transaction contribution and credit ratings around the Chuseok holiday period.
On the 10th, the Financial Services Commission announced that it has prepared and will implement these measures to ensure smooth financial access for vulnerable sectors during the Chuseok holiday period through policy financial institutions and financial sectors.
First, the Korea Development Bank will supply 3.8 trillion KRW for working capital through branch consultations and screenings, offering an interest rate reduction benefit of up to 0.6 percentage points (P). Industrial Bank of Korea will provide up to 300 million KRW per company for working capital purposes such as raw material payments and employee salaries and bonuses, supplying 9.2 trillion KRW in total. For settlement-type loans, an interest rate reduction benefit of up to 0.3 percentage points is also offered. The Korea Credit Guarantee Fund will provide guarantees worth 8.8 trillion KRW. It will simplify screening procedures for currently operated special and preferential guarantee programs and offer preferential treatment on guarantee fees, guarantee ratios, and guarantee limits.
The banking sector plans to supply loans totaling 78.8 trillion KRW to SMEs and small business owners, reflecting preferential interest rates based on transaction contribution and credit ratings. This includes 32 trillion KRW in new loans and 46.8 trillion KRW in maturity extensions. NongHyup Bank offers preferential interest rates up to 2.0%, SC Bank up to 1.7%, and Shinhan, Woori, Hana, Kookmin, and Suhyup Banks apply preferential rates up to 1.5%.
Measures to support traditional market holiday funds have also been prepared. The Korea Inclusive Finance Agency will provide 5 billion KRW in special funds through merchant associations to help traditional market merchants purchase seasonal goods ahead of Chuseok. Traditional market merchants can use small loans of up to 10 million KRW at an annual interest rate within 4.5% through merchant associations for two months before the Chuseok holiday. The agency will also implement early re-lending before the Chuseok holiday for those who have fully repaid small livelihood loans to ease the burden of holiday living expenses. Users who have fully repaid the principal and interest of small livelihood loans can borrow up to 1 million KRW at the final interest rate of the previous loan (minimum 9.4%) starting from the 12th.
Support for Companies Affected by Settlement Delays Including WEMAKEPRICE and TMON... Advance Payment of Card Merchant Funds
The financial sector will provide up to a one-year maturity extension and repayment deferral on existing loans and guarantees for companies affected or expected to be affected by settlement delays from WEMAKEPRICE, TMON, Interpark Shopping, and AK Mall. The support applies to all business or corporate loans held by companies with sales after the settlement delay period. However, household loans such as mortgage loans or personal credit loans unrelated to business are excluded. Previously, the financial sector provided maturity extensions and repayment deferrals for a total of 1,262 cases amounting to 155.9 billion KRW in general and advance settlement loans to companies affected by WEMAKEPRICE and TMON settlement delays as of the 4th.
Furthermore, Industrial Bank of Korea, Korea Credit Guarantee Fund, and Small Enterprise and Market Service will provide liquidity support to companies affected by settlement delays from WEMAKEPRICE, TMON, Interpark Shopping, and AK Mall. So far, 891 cases amounting to 133.6 billion KRW have been supplied for WEMAKEPRICE and TMON.
The card industry will pay card merchant funds up to six days earlier for small and medium-sized card merchants. For 462,000 small merchants (annual sales between 500 million and 3 billion KRW), card payment funds incurred before or during the holiday will be promptly paid without a separate application. Additionally, if the repayment due date for financial company loans falls during the Chuseok holiday, the maturity will be automatically extended to the 19th without overdue interest. If the card payment due date falls during the Chuseok holiday, the payment will be automatically withdrawn from the customer's payment account on the 19th without late fees. Similarly, automatic payments for insurance premiums, communication fees, or utility bills due during the Chuseok holiday will be postponed to the 19th.
The Korea Housing Finance Corporation plans to pay housing pensions in advance on the 13th for all customers whose payment dates fall during the Chuseok holiday. All financial companies will refund deposits maturing during the Chuseok holiday on the 19th, including interest accrued during the holiday period.
Meanwhile, recognizing that urgent financial transactions may be necessary during the Chuseok holiday, 11 mobile branches capable of deposits, withdrawals, and new bill exchanges will operate at highway rest areas and other locations, and 10 flexible branches capable of currency exchange and remittance will operate at airports and areas with high concentrations of foreign workers.
Preventing Consumer Damage and Financial Fraud During the Holiday... Financial Sector Provides Advance Guidance
The financial sector plans to minimize customer inconvenience by providing advance guidance on precautions related to financial transactions during the Chuseok holiday. They advise customers who need large sums of money for real estate transactions or inter-company payments during the holiday to withdraw funds in advance or increase transfer limits via internet banking.
They also recommend confirming with banks or adjusting transaction dates in advance for foreign currency remittances and international payments, which are difficult to process normally during the holiday. Customers planning to receive fund redemption proceeds or insurance payments around the Chuseok holiday should inquire with financial companies or check payment schedules through product terms, as payment dates vary by product.
Additionally, the financial sector emphasizes caution against text message scams impersonating holiday gift deliveries or public institutions imposing traffic violation fines. If financial information leakage is suspected due to malicious app installations, customers should visit their financial institution’s branch or call the call center to request a comprehensive payment freeze on their accounts to minimize damage.
Since unauthorized loans may be executed without the customer’s knowledge if information is leaked, customers can prevent this by subscribing to the Credit Transaction Safety Block Service, which has been in effect since August 23. Customers wishing to subscribe can apply at their bank, savings bank, NongHyup, Suhyup, credit unions, Saemaeul Geumgo, forestry cooperatives, or post office branches where they have accounts.
It is also necessary to be aware of how to prevent damage from illegal private loans. Customers should carefully verify whether the lending company is registered and whether it demands fees other than interest, such as commissions, upfront fees, or service charges for brokerage. If already suffering from illegal collection or lending, customers should respond in the order of 'confirming damage → notifying violations → securing evidence → reporting damage' and actively use free debtor representative support services. Since July, support targets have been expanded to protect family and acquaintances of illegal collection victims, so those affected should actively use these services to receive relief.
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