Shinhyup Extends Interest-Free Loans for 1 Year in Gunsan and Geoje Areas

Loan Interest Totaling 1.95 Billion KRW Fully Covered by Shinhyup Social Contribution Foundation

Kim Yoon-sik, President of the National Credit Union Federation of Korea (second from the right), is encouraging merchants while walking through the underground shopping mall.

[Asia Economy Reporter Kim Min-young] The National Credit Union Federation of Korea announced on the 21st that it will extend interest-free and unsecured loans provided to the employment and industrial crisis areas of Gunsan and Geoje for one year.

The Together Social Sharing Support Loan, implemented by the credit union since last year, is part of the special support project for employment and industrial crisis areas, one of the seven inclusive finance projects. As of June, the credit union has provided a total of 24.9 billion KRW in interest-free and unsecured loans to approximately 2,500 residents of the Gunsan and Geoje areas. Although the original loan product has an interest rate of 4%, local residents were able to receive loans without interest because the Credit Union Social Contribution Foundation fully covers the loan interest.

As the economic difficulties of small business owners and self-employed individuals in the Gunsan and Geoje areas have prolonged due to the spread of the novel coronavirus infection (COVID-19) and the ongoing economic recession, the credit union decided to extend the interest support period for outstanding loans by one year. The loan interest support amount provided last year was a total of 950 million KRW, and with the extension, an additional approximately 1 billion KRW will be added, making a total support of 1.95 billion KRW.

Kim Yoon-sik, Chairman of the National Credit Union Federation of Korea, stated, “The role of the credit union is to support ordinary people and socially vulnerable groups especially when the local economy is difficult,” and added, “We will do our best to revive the economically crisis-stricken areas affected by COVID-19 through substantial support rather than one-time aid.”