Seogeumwon, Seomin Finance Meeting... "Incentives Needed to Lower Interest Rates for Consulting Users"

After the meeting, the participants are taking a commemorative photo. From the left: Jeong Sun-ho, Head of Management Innovation Division at the Credit Recovery Committee; Koo Ja-hyun, Head of Knowledge Economy Research Department at the Korea Development Institute; Nam Ju-ha, Professor at Sogang University; Choi Hyun-ja, Professor at Seoul National University; Lee Gye-moon, President of the Korea Inclusive Finance Agency and Chairman of the Credit Recovery Committee; Park Chang-gyun, Director of Research Coordination Office at the Korea Capital Market Institute; Koo Jung-han, Senior Research Fellow at the Korea Institute of Finance; Yoo Jae-wook, Head of Management Innovation Division at the Korea Inclusive Finance Agency.
[Photo by Korea Inclusive Finance Agency]

[Asia Economy Reporter Song Seung-seop] The Korea Inclusive Finance Agency and the Credit Counseling & Recovery Service announced on the 6th that they held a meeting to discuss measures to promote financial stability for low-income individuals.

The meeting was conducted by gathering expert opinions on the ‘1:1 Customized Credit and Debt Management Consulting (KIFA)’ and ‘Credit Welfare Consulting (CCRS)’ programs currently implemented by the two organizations. The meeting took place over two days starting from the 3rd.

These systems were established by the two organizations to promote financial stability. The core is customized consulting that systematically supports credit improvement, financial products, and welfare programs. It assists with phased support and use of debt adjustment, inclusive finance, and banking products. When livelihood support is needed, the institutions also connect clients to receive welfare benefits.

Professor Choi Hyun-ja of Seoul National University’s Department of Consumer Studies, who attended the meeting, advised, “To enhance low-income individuals’ ability to manage credit debt and improve consumption habits, pre-consultations should be activated before debt problems arise,” adding, “It is desirable to introduce incentives such as reducing interest rates on inclusive finance for consulting users.”

Kim Jae-kwang, Director of the Heenyon Finance Center, stated, “Reducing the debt repayment burden for young people along with supporting asset formation will provide practical help,” and emphasized, “After KIFA and CCRS establish a credit counseling platform, it is necessary to share it with private counseling organizations that closely interact with debtors.”

Lee Gye-moon, Director and Chairman, said, “Based on service innovations over the past two years, we plan to enhance the quality of consulting by quantitatively expanding customized consulting, conducting detailed performance analysis, and expanding connections with financial products and welfare, while also strengthening cooperation with private credit counseling organizations to activate credit counseling.”

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