Residents clear mud and waterlogged belongings from flooded shops and homes in Okpo-dong, Geoje, South Gyeongsang Province, on Tuesday, after record-breaking heavy rain caused widespread damage in the area. [Newsis]
Residents clear mud and waterlogged belongings from flooded shops and homes in Okpo-dong, Geoje, South Gyeongsang Province, on Tuesday, after record-breaking heavy rain caused widespread damage in the area. [Newsis]

South Korea's credit card industry has launched special financial relief measures for customers affected by the heavy rains that struck South Gyeongsang Province.

Major card companies will defer billing for flood-affected customers for up to six months and cut interest rates and fees on card loans and cash advances by as much as 30 percent, according to financial industry sources Thursday. The billing deferral applies across most companies, with individual firms adding further measures such as installment repayment options, suspension of debt collection and reductions in late fees.

Samsung Card will defer billing on credit card payments made between August and October this year for up to six months. Domestic transactions of 10,000 won ($7) or more can be split into interest-free installments over the same period. Interest on cash advances and card loans will be cut by up to 30 percent.

Shinhan Card will defer repayments for affected customers and their immediate family members by one to six months, after which they may repay in installments over an additional six months. Fees on cash advances and card loans will also be discounted by 30 percent.

KB Kookmin Card will defer credit card billing for up to six months and reduce fees on cash advances and card loan interest rates used after the flooding by 30 percent.

Hyundai Card will defer billing on both card payments and existing short- and long-term card loan balances for up to six months each. Interest rates on new card loans will be lowered by up to 30 percent, debt collection activities for delinquent members will be suspended for up to six months, and all late fees will be waived.

Lotte Card will defer credit card billing for up to six months and suspend debt collection for six months from the point damage is confirmed. The company will also support installment repayment and reduce late fees, while cutting card loan and cash advance interest by up to 30 percent.

Woori Card will defer card payments for up to six months, waive interest on overdue amounts incurred after the flooding and erase customers' delinquency records.

BC Card has extended its relief to merchants as well as individual customers. Billing on domestic card transactions — including lump-sum payments, installment purchases and cash advances — can be deferred for up to six months.

NH NongHyup Card will apply a billing deferral of up to six months to lump-sum payments, installment purchases, short-term card loans and long-term card loans.

To qualify for the special relief, customers must submit a damage certificate issued by the local government authority in the affected area.

Financial authorities are also reviewing relief measures for flood victims. As in previous years, support is expected to include emergency living funds and business stabilization loans for affected households, small business owners and small and medium-sized enterprises, along with loan maturity extensions, repayment deferrals, insurance premium payment deferrals and expedited insurance payouts. Some mutual financial institutions, including saemaul credit cooperatives, are also reviewing their own support packages.


won@heraldcorp.com