Emergency financial support for households and SMEs hit by flooding in southern regions — bank-by-bank livelihood stabilization funds, maturity extensions, special debt restructuring
Source material is a Korean government announcement (in Korean).
Households, small business owners and SMEs damaged by torrential rain in southern regions such as Geoje in South Gyeongsang Province can obtain a disaster damage confirmation certificate (재해피해확인서) issued by their local government and contact the financial company they bank with to receive emergency livelihood and management stabilization funds, loan maturity extensions and repayment deferrals, insurance premium payment deferrals, deferred card billing, and special debt restructuring.
Key facts
| Who is covered | Households · small business owners · SMEs damaged by torrential rain in southern regions such as Geoje in South Gyeongsang Province |
|---|---|
| Required document | Disaster damage confirmation certificate (재해피해확인서) issued by the local government |
| Household emergency living funds | Up to 20 million won at Shinhan, Woori, KB Kookmin, iM, Busan and Kyongnam banks; up to 50 million won at Hana Bank; up to 100 million won within the damage amount at NH Nonghyup Bank; up to 30 million won at IBK; up to 30 million won per household at Nonghyup; up to 20 million won per person at Suhyup; up to 10 million won per person at MG Community Credit Cooperatives |
| Loan maturity extension and repayment deferral | Maturity extension, repayment deferral or installment repayment of loan principal for a set period (3 months to 1 year). KB Kookmin and Shinhan banks give a preferential rate of up to 1.5%p and waive late-payment interest on maturity extension; Woori, Hana and Kyongnam banks give maturity extension of up to 1 year and a rate preference of up to 1.0%p; IBK and Busan Bank give maturity extension of up to 1 year and repayment deferral of up to 6 months |
| Cards | All card companies defer billing of payment amounts for up to 6 months, and discount interest rates on new loans taken out after the damage occurred by up to 30% |
| Insurance | Raised priority and early payment in insurance claim review and payout, and deferral of the premium payment obligation for up to 6 months. Flood damage is covered where own-vehicle damage coverage is included in auto insurance |
| Special debt restructuring | Apply to the Credit Counseling & Recovery Service (신용회복위원회). Fast-track debt restructuring can be applied for even before delinquency occurs, with interest-free repayment deferral of up to 1 year and a fixed 70% preferential debt reduction |
| Corporate support | IBK emergency operating funds of up to 300 million won per company; Korea Development Bank within its per-company limit. Korea Credit Guarantee Fund special guarantee with a 90% guarantee ratio, a fixed guarantee fee rate of 0.1–0.5%, and a guarantee limit of up to 500 million won. Existing loans and guarantees receive maturity extension of up to 1 year |
| Counseling | The Financial Supervisory Service opens counseling centers at each of its regional offices (지원), and provides on-site financial counseling staff in severely damaged areas |
| Inquiries | Financial Services Commission, Industrial Finance Division, 02-2100-2864, 02-2100-2867 |
Last checked:
On August 20, 2026, the Financial Services Commission said it had formed an emergency financial response team and prepared financial support measures for households and small and medium-sized enterprises damaged by torrential rain in southern regions such as Geoje in South Gyeongsang Province. Affected households are supported with emergency livelihood stabilization funds, maturity extensions and repayment deferrals on existing loans, insurance premium payment deferrals and expedited insurance payouts, deferred billing of card payments, and special debt restructuring for delinquent debt. Small business owners and SMEs are supported with emergency management stabilization funds, maturity extensions and repayment deferrals on existing loans, special guarantees, and debt restructuring for delinquent debt. To apply for financial support, applicants must first obtain and bring a disaster damage confirmation certificate (재해피해확인서) issued by their local government.
Background — why this change
The Financial Services Commission said it plans to form an emergency financial response team for flood damage, centered on the Financial Supervisory Service, financial-sector institutions and industry associations, to comprehensively review the damage situation and the financial support response. It also advised that particular caution is needed because voice phishing (spam) messages are being sent at random, impersonating the government, public institutions or financial institutions to induce phone consultations such as loan brokerage or to get recipients to click on URLs.
Summaries below are factual notes based on government announcements and primary sources — not evaluations or opinions.
FAQ
What should I prepare first?
You must first obtain and bring a disaster damage confirmation certificate (재해피해확인서) issued by your local government. Even if you fall within the eligible group, whether support is available and the support conditions may differ by financial company, so it is better to first ask the relevant financial company or the industry association about the support details before visiting a branch.
Can card bills or insurance premiums also be postponed?
All card companies defer billing of credit card payments for flood-damaged customers for up to 6 months. Some card companies additionally support installment repayment after the deferral ends (Samsung, Shinhan), waiver of late fees incurred after the damage (Woori, Hyundai, KB Kookmin), deferral of collection on delinquent amounts (Lotte, Woori, Hana, Hyundai), and installment repayment (Lotte, Hana). For insurance, the premium payment obligation is deferred for up to 6 months.
Can I get support even if I am already delinquent?
Individuals having difficulty repaying debt can apply to the Credit Counseling & Recovery Service (신용회복위원회) for special debt restructuring. Unlike ordinary debt restructuring, fast-track debt restructuring can be applied for even before delinquency occurs, and applicants can additionally receive interest-free repayment deferral of up to 1 year and a fixed 70% preferential debt reduction. Small business owners and SMEs that are delinquent on their debt can receive debt restructuring such as interest reduction through the New Start Fund (새출발기금) currently in operation.