KB Kookmin Bank and Shinhan Bank have begun providing emergency financial support to partner firms struggling due to delayed settlements related to Homeplus.

On July 8, the financial industry said KB Kookmin Bank will provide emergency financial support to partner firms, including small and micro businesses, facing difficulties such as delayed settlements due to Homeplus’ corporate rehabilitation process.

Eligible firms are small businesses and merchants that trade with Homeplus. Companies supplying to Homeplus or operating in its stores can receive support by submitting relevant supporting documents.

KB Kookmin Bank will provide emergency working capital loans of up to 500 million won, within the scale of damage, to partner firms that need new funds and will offer discounted rates. It will also implement measures to ease the financial burden on partner firms with existing loans.

Loans reaching maturity can be extended by up to 1 year without partial repayment of principal. The bank will also offer preferential interest rates for up to 1 year when loans are extended. For loans being repaid in installments, principal repayments can be deferred for up to 1 year.

Shinhan Bank also said it will begin financial support for Homeplus partner firms from July 8. It described the move as a measure to reduce their financial burden.

It will provide new and refinancing loans of up to 500 million won per firm and offer loan-rate discounts of up to 1.0 percentage point. It will also support maturity extensions without principal repayment at maturity and deferrals of installment repayments.

In particular, it will reduce overdue interest for partner firms in arrears. If a firm’s supply to Homeplus is confirmed, the bank plans to provide swift support without separate documents confirming delayed payment of supply proceeds.

The banking sector’s support is intended to address concerns that Homeplus-related developments could increase funding-rotation pressure for partner firms. If settlements for supply payments are delayed, small partner firms and merchants may have to directly shoulder operating funding burdens such as raw material costs, labor costs and rent.

A KB Kookmin Bank official said it will provide practical financial support so partner firms facing difficulties due to Homeplus’ corporate rehabilitation process can continue their business in a stable way.

A Shinhan Bank official said it will continue to prepare financial support measures that can provide practical help to partner firms’ management stability.