Banks Contribute 220 Billion Won to Seogeumwon and Sinbokwi for "Support of Vulnerable Groups"

Korea Asset Management Corporation to Contribute 50 Billion Won to Seomin Financial Promotion Agency This Year
Supporting Small Livelihood Loans and Other Projects

The banking sector will contribute 220 billion KRW to the Korea Inclusive Finance Agency and the Credit Counseling & Recovery Service to support vulnerable groups.

On the 13th, the Korea Federation of Banks signed a "Memorandum of Understanding on Small Livelihood Loans for Vulnerable Groups and Small Financial Support for Debt Adjustment Faithful Repayers" with the Korea Asset Management Corporation, the Korea Inclusive Finance Agency, and the Credit Counseling & Recovery Service.

This agreement is part of the "Bank Social Responsibility Project" announced last February and aims to support vulnerable groups such as low-income individuals, low-credit borrowers, and faithful debt adjusters by utilizing joint social contribution funds from the banking sector.

The banking sector will contribute 150 billion KRW over three years to the Korea Inclusive Finance Agency and 70 billion KRW over four years to the Credit Counseling & Recovery Service. The Korea Asset Management Corporation will contribute 50 billion KRW to the Korea Inclusive Finance Agency this year.

The Korea Inclusive Finance Agency will use the total 200 billion KRW contributed by the banking sector and the Korea Asset Management Corporation to operate a small livelihood loan program, providing up to 1 million KRW in living expenses to vulnerable groups such as low-income and low-credit individuals who are at risk of illegal private loans.

The Credit Counseling & Recovery Service will use the 70 billion KRW contributed by the banking sector to run a small financial support program, providing up to 15 million KRW to vulnerable groups who are faithfully repaying their debts, helping them avoid high-interest loans and achieve economic recovery.

Kim Kwang-soo, Chairman of the Korea Federation of Banks, stated, "The banking sector will actively promote social contribution projects to fulfill its social roles and responsibilities. We will support and cooperate to ensure that the small livelihood loan and small financial support programs are successfully established."

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