KB Kookmin Bank offers emergency loans of up to W500m to Homeplus suppliers

KB Kookmin Bank announced Tuesday it will offer emergency working capital loans of up to 500 million won ($325,000) to suppliers struggling with delayed payments and other difficulties stemming from Homeplus's corporate rehabilitation proceedings.

The emergency financial support targets small and medium-sized enterprises and small business owners that do business with Homeplus. Companies that supply goods to Homeplus or operate stores within its outlets can apply by submitting relevant supporting documents.

For suppliers in need of new funding, Kookmin Bank will extend emergency working capital loans of up to 500 million won — within the scope of verified losses — at discounted interest rates.

Suppliers with existing loans will also receive relief measures to ease their financial burden. Loans coming due can be extended by up to one year without requiring partial principal repayment, and preferential interest rates will apply for up to one year upon extension. For loans being repaid in installments, principal repayment can be deferred for up to one year.

According to the Financial Services Commission, banks including Kookmin Bank have provided about 5 trillion won in financial support — covering 7,546 cases of loan extensions, repayment deferrals and other measures — to Homeplus suppliers over roughly 16 months since the retailer entered rehabilitation proceedings on March 4 last year.

"We will continue to actively support the business stability of small and medium-sized enterprises and small business owners facing temporary liquidity difficulties," a Kookmin Bank official said.