Banks, card companies offer emergency aid to flood victims in Gyeongnam

Major commercial banks and credit card companies in South Korea have launched emergency financial support measures for customers affected by the recent torrential rains in the southern region. The initiative aims to alleviate the financial burden on individuals and businesses grappling with the aftermath of the disaster.

Four major banks, KB Kookmin, Shinhan, Hana, and Woori, are offering emergency loans for living expenses to individual customers, with limits set at 50 million won for Hana Bank, 30 million won for Shinhan Bank, and 20 million won for KB Kookmin and Woori Bank, depending on the extent of the damage. For small and medium-sized enterprises, small business owners, and sole proprietors, the banks are providing emergency working capital loans of up to 500 million won at special preferential interest rates ranging from 1.3% to 1.5% below standard rates. They are also offering facility loans to support the restoration of damaged properties.

Additionally, affected customers with maturing loans will have their repayment deadlines extended by up to one year without additional principal payments. New loans and extensions will receive interest rate benefits of 1.0% to 1.3% below standard rates. A grace period for installment payments of up to six months is also available. Beyond financial aid, banks are providing on-site support, including tents for evacuees and essential relief items like food service vehicles, toiletries, and medicine.

Credit card companies are also participating in the relief efforts. Woori Card is allowing affected customers to defer card payments for up to six months, waiving late fees, and removing delinquency records. Shinhan Card is offering payment deferrals for credit card bills for affected customers and their immediate families for one to six months, followed by an installment payment plan for up to six months. They are also providing a 30% discount on fees for short-term and long-term card loans taken out after the disaster date.