"From Loan Supply to Volunteer Activities" Bank Sector's Chuseok Support Package for Small Business Owners

In celebration of the Chuseok holiday, banks have rolled up their sleeves to support small business owners and small and medium-sized enterprises (SMEs). This support takes various forms, including loan supplies amounting to approximately 80 trillion won, as well as efforts to revitalize traditional markets and volunteer activities.

Shinhan Financial Group purchased 10 billion won worth of Onnuri gift certificates ahead of Chuseok and donated them to the local community. With the aim of boosting domestic demand and revitalizing traditional markets, the Onnuri gift certificates purchased from the Small Enterprise and Market Service were distributed to various neighbors around us, such as elderly living alone, children suffering from food insecurity, and youth seeking independence, through the Community Chest of Korea.

Woori Bank also announced that it will expand its 'Janggeumi Partnership' program, which supports traditional market small business owners financially, to 50 locations nationwide within this year. During the Chuseok holiday period, it plans to open the parking lots of its headquarters in Jung-gu, Seoul, and 14 stores near traditional markets in Seoul free of charge for visitors to traditional markets.

On the 10th, KB Kookmin Bank held the '2024 Chuseok Traditional Market Love Sharing Event' to promote the revitalization of traditional markets and coexistence with marginalized neighbors. KB Kookmin Bank’s 13 regional groups nationwide, together with the nonprofit organization 'Hope Friends Kia Daecheok,' purchased groceries at traditional markets and delivered them to local welfare facilities and neighbors in need. Starting this year, to strengthen support for small business owners and vulnerable groups facing difficulties due to the economic downturn, the support amount was increased from 2 billion won annually to 3 billion won, and the number of beneficiaries was expanded from about 30,000 households to 40,000 households annually.

NH Nonghyup Bank’s ESG Planning Team and about 20 volunteers from Gasan Nonghyup conducted a volunteer activity to assist with the harvest for Chuseok. On the 9th, they visited an orchard farm located in Gasan-myeon, Pocheon-si, Gyeonggi Province, to help with the harvest during the busy Chuseok season. This volunteer work was carried out to assist farmers who face labor shortages during the peak harvest period before the Chuseok holiday.

According to the Financial Services Commission, banks will supply a total of 78.8 trillion won in loans (32 trillion won in new loans and 46.8 trillion won in maturity extensions) to SMEs and small business owners around the Chuseok holiday, reflecting preferential interest rates based on transaction contribution and credit ratings. Among these, the four major commercial banks?KB Kookmin, Shinhan, Hana, and Woori?will each supply 15.1 trillion won in funds, including 6.1 trillion won in new funds and 9 trillion won in maturity extensions. Interest rates will be preferentially reduced by up to 1.5 percentage points. NH Nonghyup Bank will provide loans totaling 13 trillion won, including 5 trillion won in new loans and 8 trillion won in maturity extensions, applying preferential interest rates of up to 2 percentage points. Regional banks such as Busan Bank and Kyongnam Bank will also offer low-interest loans to SMEs and small business owners in their regions, supplying new loans of 800 billion won each.