Shinhyup Launches Ultra-Low Interest, Unsecured Loans in Gangwon Region Hit Hard by COVID-19

Special Support Implemented for Gohan and Sabuk, Gangwon-do Facing Economic Hardship Due to COVID-19 Tourist Decline
Shinhan Cooperative Offers Ultra-Low Interest, Unsecured Loans Up to 20 Million KRW Per Person Through Together Social Sharing Support Loan

On August 13th, Kim Yunsik, President of the National Credit Union Federation of Korea (center), visited Gohan Credit Union in the Gangwon region to encourage the union's executives and employees and took a commemorative photo.

[Asia Economy Reporter Kim Min-young] The National Credit Union Federation of Korea announced on the 20th that it will provide ultra-low interest and unsecured loans until December 31 to the Gohan and Sabuk areas of Gangwon Province, which have been affected by the spread of the novel coronavirus infection (COVID-19).

Gohan and Sabuk, once famous for coal mines, have developed tourism as their main livelihood under the "Special Act on Support for Closed Mine Areas" following the decline of the coal industry. However, due to the recent spread of COVID-19, major nearby businesses such as Kangwon Land have been fully closed or suspended, worsening the local economy. Accordingly, the credit union has decided to provide interest-free and unsecured loans to individuals facing livelihood difficulties due to unemployment or reduced wages (income) and to small business owners experiencing a sharp decline in sales.

This ShinHyup Together Social Sharing Support Loan is available for application through Gohan ShinHyup and Sabuk ShinHyup in Gangwon Province until the end of this year, with a maximum limit of up to 20 million KRW per person. Although the original loan interest rate is around 4%, the ShinHyup Social Contribution Foundation supports 3%, so the debtor's burden is provided at a low interest rate ranging from zero interest to a maximum of 1%, and the loan period is one year. When applying, a damage confirmation letter proving economic damage must be submitted together.

Kim Yoon-sik, Chairman of the National Credit Union Federation of Korea, said, "I hope this loan will be a great help to the residents of Gohan and Sabuk who are experiencing economic difficulties," and added, "We will continue to fulfill the role of a community financial cooperative that coexists with the local community with the spirit of 'lifelong support.'"