South Korea Financial Services Commission unveils emergency financial support for flood-hit households and small businesses

The South Korea Financial Services Commission has introduced emergency financial support for households, small businesses and small and midsize enterprises affected by flooding. Measures include emergency funding, loan maturity extensions and repayment deferrals, accelerated insurance payouts, insurance premium and card payment deferrals, and debt restructuring. Affected households may receive loan extensions or repayment relief for three months to one year, insurance premium deferrals of up to six months and card payment deferrals of up to six months. Insurers may advance up to 50% of estimated claims before completing loss assessments. Individuals in specially designated disaster areas may apply for up to one year of interest-free repayment deferral and, for eligible charged-off long-overdue debt, a fixed 70% reduction. Support for affected businesses includes recovery and operating funds, special guarantees of up to KRW 500 million, and loan or guarantee maturity extensions of up to one year, subject to provider-specific terms. The Financial Services Commission has formed an emergency flood financial response team with the Financial Supervisory Service, financial institutions and industry associations. The Financial Supervisory Service will operate counseling centers and may deploy staff to severely affected areas. Applicants generally need a disaster damage certificate issued by their local government, and eligibility and terms vary by financial institution.