Saemaul Geumgo Answers Birth Celebrations with Preferential Interest Rates

Saemaul Geumgo is expanding its role as a regional cooperative financial institution by introducing a series of specialized financial products aimed at addressing the low birthrate crisis. The cooperative’s public role is once again in the spotlight, as it seeks to solve social problems by offering tangible interest rate benefits to families with newborns.

Jongbeop Cho, Executive Director of the National Credit Union Federation of Korea (second from the left), and Yuri Jung, Chairman of the Nanggok Credit Union (first from the left), held a subscription event for the "Geoleumma (Horse) Savings" on the 8th at the Nanggok Credit Union headquarters located in Sillim-dong, Gwanak-gu, Seoul, and took a commemorative photo with the first subscriber.

원본보기 아이콘

The National Credit Union Federation of Korea announced the launch of the "MG Hope Sharing Georeumma Savings Account," a product designed to help overcome the low birthrate. This new product is the fourth in a series targeting the low birthrate issue, following the "Kkangchung Savings Account" in 2023, the "Yongyong Savings Account" in 2024, and the "Baby Snake Savings Account" in 2025.

The "Georeumma Savings Account" is a one-year installment product, limited to a total of 50,000 accounts. The monthly deposit limit is 300,000 won, and the base annual interest rate is 4%. A preferential interest rate is added depending on the number of children in the family, with the highest possible annual interest rate reaching 12%. Notably, for newborns in areas with declining populations, the maximum annual rate of 12% (base rate of 4% plus a preferential rate of 8%) is applied regardless of the number of children.

This product is more than just a high-interest promotional savings account; it carries a policy message by supporting families with multiple children and encouraging births in areas facing population decline. Experts note that this strategy reflects Saemaul Geumgo's efforts to foster a birth-friendly atmosphere and highlight shared values within local communities through financial products.

To commemorate the product's launch, the National Credit Union Federation of Korea held a subscription event on April 8 at the Nanggok Credit Union headquarters in Sillim-dong, Gwanak-gu, Seoul. The first subscriber was a child of a credit union member who operates a local child center for students in challenging circumstances. The child received both the preferential interest rate benefits and a special gift to celebrate their birth.

Zobongup, Managing Director of the National Credit Union Federation of Korea, stated, "Over the past four years, we have launched products themed around the Chinese zodiac each year in an effort to provide practical benefits and help resolve the low birthrate issue. As a financial institution committed to mutual growth with local communities, Saemaul Geumgo will continue to fulfill its social responsibilities by supporting vulnerable groups and revitalizing regional economies, in addition to addressing the low birthrate problem."

In addition to this new savings account, Saemaul Geumgo is also strengthening inclusive finance through initiatives such as support for social solidarity economy organizations and special guarantee products for low-credit individuals. As a community-based cooperative financial institution, it is actively working to discover various social contribution models that embrace ordinary people and local communities together.

The launch of the "Georeumma Savings Account" can be seen as an example of the financial sector responding to the demand that birth encouragement policies must provide tangible benefits rather than remain mere declarations. Amid the dual crises of low birthrate and regional depopulation, Saemaul Geumgo's latest initiative is regarded as a social experiment that goes beyond simply launching a new product, taking on a supplementary policy role for regional finance.

© The Asia Business Daily(www.asiae.co.kr). All rights reserved.