Banks offer loans, rate cuts to merchants harmed by Seocheon fire

Korea's major financial groups are offering financial aid to merchants affected by a recent fire at a traditional market in Seocheon Country.

A fire broke out Monday night at a traditional market in Seocheon County, South Chungcheong, and burnt 227 shops with no human deaths. [NEWS1]

Korea’s four largest financial groups — KB Kookmin, Shinhan, Hana and Woori — are channeling emergency financial aid to help merchants impacted by a recent fire that broke out Monday at a traditional market in Seocheon County, South Chungcheong.

The fire, which broke out late Monday night and was extinguished about nine hours later at 7:55 a.m., is reported to have burned 227 shops with no human deaths.

Following the fire, Hana Financial Group said Tuesday that its subsidiaries, including Hana Bank, Hana Card, Hana Life and Hana Insurance, are offering financial support for those who suffered financial damage due to the recent fire. Hana Bank, for one, will provide up to 500 million won ($373,832) in loans to help business owners impacted by the fire, extend the maturity of existing loans by up to a year, offer forbearance for installment payments of up to six months and cut loan rates by up to 1.3 percent.

Shinhan Financial Group said that Shinhan Bank will provide loan interest rate cuts of up to 1.5 percentage points and offer new loans of up to 500 million won as well as maturity extension and installment payments forbearance. Other Shinhan companies, including Shinhan Card and Shinhan Life, will also provide support packages including insurance premium deferral for six months.

KB Financial Group will deliver emergency relief kits and deploy food vans and mobile laundry service vans to the impacted region. Its subsidiaries — KB Kookmin Bank, KB Insurance, and KB Kookmin Card — are also providing financial support including loan issuance, maturity extension, favorable interest rates and payment forbearance for those who file damage statements within three months.

Woori Financial Group, including Woori Bank, Woori Card and Woori Financial Capital, will provide merchants with loans of up to 500 million won at preferential interest rates, as well as credit-card forbearance and maturity extensions of up to a year.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]