Leading domestic banks said Tuesday they would provide financial services to help the victims of the deadly sinking of the Sewol ferry on April 16.

A number of local banks, including KB Kookmin Bank, Woori Bank, Hana Bank and Korea Exchange Bank, pledged to support the victims’ families and survivors with emergency funding.

Support measures include offering up to 20 million won ($19,600) in loans without collateral and also extending the maturity of existing loans made to them, the banks said.

The announcement came as the government is looking to increase its spending amid signs of a contraction in domestic consumption in the wake of the ferry disaster.

The Finance Ministry said it would spend an additional 7.8 trillion won in the second quarter to boost domestic demand. The government also plans to provide about 15 billion won in low-interest loans to small companies through its tourism development fund.

(596story@heraldcorp.com)