South Korea’s five major banks offer special Chuseok financing for small businesses

South Korea’s major commercial banks will roll out special financing for small and medium-sized businesses and sole proprietors ahead of the Chuseok holiday.

KB Kookmin, Shinhan, Hana and Woori banks each plan to supply 15.2 trillion won. That includes 6.2 trillion won in new lending and 9 trillion won in loan maturity extensions at each bank. The programs run from August 24 through October 16.

NH Nonghyup Bank plans to provide 13.575 trillion won, comprising 5.075 trillion won in new loans and 8.5 trillion won in maturity extensions. Its program runs through October 12.

Businesses can borrow up to 1 billion won within their required funding needs. Banks will allow maturity extensions without requiring partial repayment of principal and will defer scheduled installment payments. Borrowers can also receive preferential interest rates of up to 1.5 percentage points.