KB Financial pledges 500 million won, deploys shelter and meal trucks

Shinhan Financial donates 500 million won at holding level; Shinhan Bank adds 200 million won

Hana Financial delivers 500 'happiness boxes'

Woori Financial dispatches emergency meal truck to disaster sites

Clockwise from top left: exterior views of KB, Woori, Shinhan and Hana banks. [Each company]
Clockwise from top left: exterior views of KB, Woori, Shinhan and Hana banks. [Each company]

South Korea's four major financial groups have pledged a combined 2 billion won ($1.44 million) in donations to support flood victims and recovery efforts following heavy rains that caused widespread damage in Geoje, Tongyeong and other parts of South Gyeongsang Province. Banks in the groups are extending emergency loans to affected residents, small businesses and small and medium-sized enterprises, while their card and insurance affiliates are deferring payments and premiums.

KB Financial Group, Shinhan Financial Group, Hana Financial Group and Woori Financial Group each pledged 500 million won — totaling 2 billion won — to help restore daily life for flood victims in the region, according to financial industry sources Friday. With an additional 200 million won donated separately by Shinhan Bank, the four groups' combined contributions stand at 2.2 billion won.

The banks are offering emergency living-support loans of up to 20 million to 50 million won for affected individuals and emergency operating funds of up to 500 million won for small business owners and small and medium-sized enterprises. They are also extending maturities on existing loans, deferring installment repayments and reducing interest rates.

KB Kookmin Bank is providing up to 20 million won to individuals and up to 500 million won to self-employed borrowers and small and medium-sized enterprises. Shinhan Bank is offering up to 30 million won to individuals and up to 500 million won to business customers. Hana Bank is extending up to 50 million won to individuals and up to 500 million won to small and medium-sized enterprises, small business owners and sole proprietors, along with an interest rate discount of up to 1.3 percentage points. Woori Bank has set aside a total of 200 billion won in financial support for small business owners and small and medium-sized enterprises, supplying up to 500 million won per company, and is offering individuals up to 20 million won in living-support funds.

Card affiliates have also moved to ease the payment burden on affected customers. The card units of KB, Shinhan, Hana and Woori are deferring card payment billing or repayment by up to six months. KB, Shinhan and Hana Card are cutting fees on short- and long-term card loans taken out after the disaster by 30 percent, while Woori Card is offering preferential interest rates on card loans, credit loans and cash advance services. Woori Card is also waiving overdue interest accrued since the disaster and erasing late-payment records.

Insurance affiliates have joined the effort by deferring premium payments and expediting claim payouts. KB Insurance is allowing long-term policyholders to defer premium payments without penalty interest. Shinhan Life is deferring premiums and waiving up to 1 million won in interest over six months for customers with policy loans. Hana Life is deferring premium and policy loan interest payments for up to 12 months, and Hana Insurance is paying out up to 50 percent of estimated claim amounts before investigations are complete.

On-site relief efforts are also under way. KB Financial Group has deployed shelter facilities and meal trucks to affected areas, while Shinhan Financial Group is providing emergency relief kits and tents and plans to mobilize employee volunteer teams from its Busan and South Gyeongsang branches for recovery work. Hana Financial Group delivered 500 "happiness boxes" containing blankets, toiletries and medicines. Woori Financial Group is distributing emergency relief kits and has dispatched a mobile meal truck to the scene to provide food to displaced residents and recovery workers.


forest@heraldcorp.com