Banks to Supply 1.2 Trillion KRW to Social Enterprises by September

[Asia Economy Reporter Kwangho Lee] As of October this year, the amount of funds supplied by banks to social economy enterprises reached 1.2612 trillion KRW.

Social economy enterprises refer to organizations that pursue social objectives by providing services or jobs to vulnerable groups while conducting business activities. However, many of these enterprises have short business histories and small scales, making it difficult to raise funds through private financial companies.

The Financial Services Commission announced on the 16th that it held the 3rd 'Social Finance Council' to evaluate the performance of social finance promotion and discuss future plans.

According to the council, the outstanding loans to social economy enterprises by banks amounted to 1.2612 trillion KRW as of the end of September, an increase of 139.9 billion KRW (12.5%) compared to the end of last year (1.1213 trillion KRW).

By enterprise type, the outstanding loan balances were 1.0016 trillion KRW (79.4%) for social enterprises, 225 billion KRW (17.8%) for cooperatives, 29.5 billion KRW (2.3%) for village enterprises, and 5.1 billion KRW (0.4%) for self-sufficiency enterprises.

By bank, Industrial Bank of Korea recorded 350.5 billion KRW (27.8%), Shinhan Bank 256 billion KRW (20.3%), and NongHyup Bank 158.2 billion KRW (12.5%), accounting for more than half (60.6%) of the total performance.

The Financial Services Commission stated, "We will timely implement necessary institutional improvements to ensure that next year's social finance activation plan is carried out without delay, and continue cooperation among related agencies by monitoring progress through the Social Finance Council."

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