Financial Industry Public Interest Foundation Partners with Seo Geumwon and Shinbokwi to Provide 20% Special Interest Support for Vulnerable Groups

Main Details of the Economic Independence Support Project for Youth Who Have Exited Protection and Unemployed Youth Under Debt Adjustment. Photo by Seomin Financial Supervisory Service

[Asia Economy Reporter Song Seung-seop] The Korea Inclusive Finance Agency and the Credit Counseling and Recovery Service signed a business agreement with the Financial Industry Public Interest Foundation on the 17th to support the economic independence of socially vulnerable groups.

The Financial Industry Public Interest Foundation is the first industry-level labor-management joint public interest foundation in Korea. It uses funds jointly raised by 100,000 financial labor union members and 33 financial institutions to support vulnerable groups and carry out social contribution projects.

According to the agreement, the foundation plans to provide 35 billion KRW to about 44,000 vulnerable individuals over six years. The beneficiaries will receive a special interest rate of 20% of the amount saved in savings accounts at commercial banks every six months for up to five years. The special interest will be used for asset formation support funds, vocational training expenses, and credit improvement incentives.

Support will first be provided to youths leaving child care facilities and unemployed youths undergoing debt adjustment, based on the judgment that additional support for economic independence is urgently needed. It is estimated that about 2,500 youths leaving protection and 10,000 unemployed youths who have completed debt adjustment exist each year. They will receive financial and credit education, one-on-one credit and debt management, and welfare consulting along with the special interest.

Additionally, to promote early employment and entrepreneurship, they will receive job aptitude tests and vocational training expenses up to 500,000 KRW. Job search activity expenses and one-on-one job placement services will also be provided. The Korea Inclusive Finance Agency expects about 15,000 people to find employment through this support.

Lee Gye-moon, the director, emphasized, “We will provide effective and prompt support with the foundation for the economic independence of youths leaving protection and unemployed youths undergoing debt adjustment.”

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