The financial authorities will increase funding for low-income people and strengthen the financial safety net to bolster inclusive finance for low-income and vulnerable groups. Along with lowering interest rates on low-income financial products, they will introduce new low-interest loan products and set up a task force (TF) for inclusive finance initiatives. The five major financial holding companies have drawn up a plan to expand inclusive finance, supplying about 70 trillion won over five years.
On the 8th, the Financial Services Commission held the first meeting on a grand shift to inclusive finance at the Suwon Integrated Support Center for Inclusive Finance in Gyeonggi Province. Chairperson Lee Eog-weon, financial holding companies, and private-sector experts on inclusive finance attended.
Lee said, "It is time to push for a grand shift to inclusive finance to address more fundamental solutions to financial exclusion, the accumulation of long-term arrears, and aggressive collection issues," presenting three key tasks: ▲ improving financial accessibility and easing the burden of financial expense ▲ swift support for restarting ▲ strengthening the financial safety net.
To improve financial accessibility and ease the burden of financial expense, funding for low-income people will be expanded. Policy products for low-income people such as Sunshine Loans lowered interest rates starting in January, and detailed plans for low-interest loan products for youth and socially disadvantaged groups will be announced in the first quarter.
To encourage the spread of inclusive finance in the private sector, the banking sector's supply of Sae Hope Seed loans, which was 4 trillion won last year, will be increased to 6 trillion won by 2028. Banks that play an active role in inclusive finance will have their contributions to low-income finance adjusted.
The five major financial holding companies that attended also will provide a total of 70 trillion won over the next five years. KB Financial will support the growth, restarting, and asset building of low-income people, vulnerable groups, and small business owners through 17 trillion won in inclusive finance over five years through 2030.
Shinhan Financial Group will provide a total of 15 trillion won over five years through the "Shinhan K-Growth! K-Finance! Project," and Hana Financial Group will supply 16 trillion won in inclusive finance over five years through the "Hana Grow Together Project" released in Oct. last year.
Woori Financial Group will push 7 trillion won in inclusive finance over the next five years through the "Future Co-Growth Project" released in Sept. last year. NH Nonghyup Financial will supply 15 trillion won in inclusive finance over five years from this year through 2030.
The Financial Services Commission (FSC) will form a TF led by the Secretary-General and the Head of Team to implement the three key tasks for inclusive finance and draw up detailed plans. The improvement plans will be released at the monthly meetings on the grand shift to inclusive finance.