New and refinanced loans of up to 500 million won per supplier

Interest rates cut by up to 1 percentage point

Loan maturity extensions and installment deferrals offered

Shinhan Bank's headquarters. [Shinhan Bank]
Shinhan Bank's headquarters. [Shinhan Bank]

Shinhan Bank said it will launch emergency financial support for suppliers struggling with cash shortages after the termination of Homeplus's court receivership proceedings delayed payments for delivered goods.

The program offers each eligible Homeplus supplier new loans or refinancing of up to 500 million won ($328,000), with interest rates reduced by up to 1 percentage point, the bank said Wednesday. When loans reach maturity, the bank will extend the term without requiring principal repayment and will also defer installment payments.

Suppliers currently in arrears will receive a reduction in overdue interest. Shinhan Bank also streamlined the application process, allowing suppliers to qualify for support simply by confirming they delivered goods to Homeplus — without submitting separate documentation proving a delay in payment.

"We decided to move quickly to ease the financial burden on small and medium-sized enterprises and small business owners struggling with the termination of Homeplus's receivership proceedings," a Shinhan Bank official said. "We will continue to develop financial support measures that provide meaningful help in stabilizing the operations of our suppliers."

Meanwhile, the Seoul Bankruptcy Court terminated Homeplus's receivership proceedings on Friday and said the retailer could resume the process if it secures 200 billion won and files an immediate appeal within 14 days. Given that July 17 falls on a public holiday for Constitution Day, Homeplus must in effect raise the funds by July 16 at the latest.


forest@heraldcorp.com