Financial aid eyed for typhoon-hit households, firms

Korea's financial regulator said Tuesday it will urge local financial firms to provide aggressive financial support to households and smaller firms which sustained damage from a powerful typhoon.

Typhoon Bolaven, the most powerful storm in a decade, pounded Korea with strong winds and heavy rains on Tuesday, leaving a swath of damage in its wake.

"The government is mulling preparing for far-reaching supportive measures (to minimize damage from the typhoon)," said an official at the regulatory authorities. He declined to give an estimated value of financial support.

The authorities said that they decided to call for local banks to refrain from demanding households and small and medium enterprises to repay maturing debt. Local lenders will also be advised to roll over the payment of households and smaller firms' principal and interest.

The government also said it will discuss ways to temporarily provide state loan guarantees to smaller companies if they suffer severe damage due to the typhoon.

Tow trucks held by insurance companies are expected to be stationed in areas prone to flooding in an effort to help minimize damage to autos by keeping them from being submerged. Typhoon-hit households may be given a grace period of some 12 months to delay in repaying insurance premiums, according to the regulator.

"Depending on the situation, the overall size of financial support could increase," said an official at the regulator. (Yonhap)