Samsung will contribute 200 billion won to support financially vulnerable people and small self-employed business owners. It is the second initiative in the five-year, 5 trillion won plan to expand social contributions promised after the labor-management agreement in May, following the earlier "Samsung Electronics Appreciation Festival."
Samsung said on the 16th that it will contribute 200 billion won to the Samsung Smile Microcredit Foundation to expand inclusive finance. Samsung Electronics will provide 150 billion won, and 50 billion won will be jointly contributed by financial affiliates that run the Samsung Smile Microcredit Foundation, including Samsung Life Insurance, Samsung Fire & Marine Insurance, Samsung Card and Samsung Securities.
Inclusive finance means improving financial accessibility for low-income and vulnerable groups, helping those in arrears regain their footing through relief from high interest burdens and debt adjustment, and strengthening consumer protection and the financial sector's social responsibility. The Lee Jae-myung administration is also pushing inclusive finance as a state agenda, including lowering interest rates on low-income financial products, activating debt adjustment within the financial sector, and blocking illegal private lending.
With this contribution, the Samsung Smile Microcredit Foundation will provide unsecured and non-guaranteed support for business operating funds, start-up funds and emergency living expenses to financially vulnerable people and small self-employed business owners. The loan interest rate will be 4.5% per year or less, and about 40,000 people are expected to benefit.
Earlier, Samsung Electronics promised 5 trillion won in social contributions over the next five years immediately after the labor-management agreement in May, and as the first action, from the 8th of last month for four weeks it ran the "With the people, Samsung Electronics Appreciation Festival," which returned 20% of purchase amounts in Onnuri gift certificates. The benefits in Onnuri gift certificates, initially expected to be about 400 billion won, are expected to more than double thanks to strong customer response.
A Samsung official said, "We aim to firmly support the financially vulnerable in achieving economic self-reliance and stable lives by expanding financial assistance," and added, "We will continue to put into practice the value of inclusive finance for our society's marginalized neighbors."