Seogeumwon "Linking 8.6 Billion Won Loans to Low-Interest Rates by First Half of This Year"

A Total of 701 Cases Linked Over 8 Months Since Last October

[Asia Economy Reporter Minwoo Lee] The Korea Inclusive Finance Agency connected loans worth approximately 8.6 billion KRW to low- and middle-interest rate products for low-income and vulnerable groups by the first half of this year.

The agency announced on the 28th that over the past eight months until the first half of this year, it linked a total of 701 cases, amounting to about 8.64 billion KRW, to low- and middle-interest rate loan products through its customized loan service and consultations.

The agency’s customized loan service compares over 180 loan products from commercial banks and savings banks for low-credit and low-income individuals, connecting them to the most favorable loan products. However, when using the service online, some customers chose high-interest rate products (annual interest rate of 16% or higher) due to reasons such as lack of financial information, incorrect input of information, unconditional prioritization of loan limits, or preference for specific financial institutions.

To prevent this, since October last year, the agency has provided in-depth consultation services by professional counselors via phone to customers who were approved for high-interest rate products through the customized loan online channel, but only upon request. The professional counselors conduct detailed analyses of factors such as occupation, income, and purpose of funds to prioritize connecting individuals to policy-based inclusive finance products with the most favorable interest rates under more segmented conditions.

In addition to phone-based in-depth consultations, the agency’s customized loan service also guides elderly people and persons with disabilities who are not familiar with digital devices on required documents and how to use the customized loan application (app).

Lee Jaeyeon, head of the Korea Inclusive Finance Agency, said, "During periods of rising interest rates, the financial burden felt by low-income and vulnerable groups with weak economic foundations inevitably increases relatively. Even a 0.1% reduction in interest can lower the financial burden for these groups, so we will provide thorough support through various inclusive finance services such as customized loans."

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