The five major financial holding companies supplied more than 11 trillion won in inclusive finance in the first half of this year, according to estimates.
The Financial Services Commission said on the 12th that on the 10th it held a "status check meeting on inclusive finance by the five holding companies" at Government Complex Seoul, chaired by Secretary-General Shin Jin-chang, and reviewed performance through the first half after the five major financial holding companies released plans in January to expand inclusive finance.
The five holding companies (KB, Shinhan, Hana, Woori, NongHyup) supplied a total of 11.3 trillion won in inclusive finance in the first half. This includes loans for low-income and vulnerable groups such as Sae-Hope Seed loans and mid-rate loans, loans to small business owners and the self-employed, and in-house debt restructuring and write-offs.
In particular, the five major holding companies conducted in-house debt restructuring on about 2.3 trillion won (135,000 cases) of loans in arrears in the first half and wrote off about 1.5 trillion won (119,000 cases) of long-term loans in arrears to help vulnerable debtors return to daily life and economic activity, the Financial Services Commission (FSC) said.
KB Financial Group presented additional targets that were not included when it initially set goals, such as 3.5 trillion won in private mid-rate loans and 500 billion won in preemptive write-offs of loans in arrears before the statute of limitations expires. Including these, it will provide about 7 trillion won in tailored financial support this year. It also said it wrote off about 210 billion won in the first half and will write off more than twice that amount in the second half.
Hana Financial Group said it will launch the "youth jeonse rent contract safety insurance" in the second half and provide it free of charge to young people vulnerable to jeonse fraud when handling jeonse loans. NongHyup Financial plans to contribute 100 billion won in the fourth quarter this year to establish the NH Smile Finance Foundation and supply smile finance to farmers and young people returning to rural areas.
The Financial Services Commission (FSC) said it will monitor to ensure that plans to expand inclusive finance by the five holding companies proceed effectively and, through the Inclusive Finance Strategy Task Force, will push to introduce a comprehensive evaluation system for inclusive finance, designate a dedicated chief officer, rationalize prudential regulations, and improve credit evaluation systems.