Gwangju Bank Inclusive Finance Center Surpasses 10 Billion Won in Special Loans for Small Business Owners

[Asia Economy Honam Reporting Headquarters Reporter Park Seon-gang] Gwangju Bank (President Song Jong-wook) announced on the 31st that its Inclusive Finance Center, which practices financial support for small business owners and financially vulnerable groups, has surpassed 10 billion KRW in special loans.

Gwangju Bank's Inclusive Finance Center, which marked a new beginning on November 20 last year at the location that served as the head office when the bank was founded in 1968, has provided 10 billion KRW in financial support through special inclusive finance loans to over 430 small business owners and financially vulnerable groups within just eight months of opening. Additionally, it has offered free management consulting services such as marketing, taxation, and commercial area analysis to 200 small business owners.

According to the "Status and Implications of Self-Employment in the Gwangju and Jeonnam Regions" released by the Bank of Korea Gwangju-Jeonnam Headquarters, the proportion of multiple-debt borrowers among local self-employed individuals is 22.4% in Gwangju and 22.9% in Jeonnam, both higher than the national average of 20.8%.

Furthermore, one in three self-employed individuals fails to meet the threshold for first-tier financial institutions and thus borrows money from mutual savings banks, credit cooperatives, insurance companies, or specialized credit finance companies.

In response, Gwangju Bank analyzed credit rating trends of users of high-interest loans from second-tier financial institutions and loan companies through its CMS (Credit Management Service), which aims to integrate these users into first-tier financial institutions. As a result, 42% of the analyzed subjects improved their credit ratings by up to four grades compared to their previous ratings.

The Gwangju Bank Inclusive Finance Center has received high praise for deeply embedding itself in the financial lives of local small business owners and ordinary citizens through high customer satisfaction with financial support, management consulting, education, and improvements in financial difficulties, spreading positive word of mouth.

Jung Chan-am, Vice President of the Sales Strategy Headquarters at Gwangju Bank, said, "The Gwangju Bank Inclusive Finance Center, with the sense of mission as the representative bank of Gwangju and Jeonnam, provides financial support and management consulting based on sincere financial counseling and prompt decision-making, delivering timely funding support. We will do our best to become the most trusted and beloved Gwangju Bank for the local community."

Meanwhile, the Gwangju Bank Inclusive Finance Center is located in Chungjangno 5-ga, Dong-gu, Gwangju Metropolitan City, and provides funding support, management consulting, and education to financially marginalized groups such as local small business owners and low-credit individuals with credit ratings below grade 5.

Unlike regular bank hours, the center operates from 9 a.m. to 6 p.m. on weekdays and from 9 a.m. to noon on Saturdays, with a total of seven staff members, including professional consultants, supporting the hopeful lives of local small business owners.

This content was produced with the assistance of AI translation services.