Shinhyup Partners with Gyeonggi-do to Provide 100 Billion KRW Support Over 5 Years to Social Economy Enterprises

On the 16th, at Gyeonggi Provincial Government Office, Lee Jae-myung, Governor of Gyeonggi Province (left), and Kim Yoon-sik, Chairman of the National Credit Union Federation of Korea, are taking a commemorative photo at the "Gyeonggi-do Social Economy Enterprise Special Loan Mutual Cooperation Business Agreement Ceremony." Photo by National Credit Union Federation of Korea

[Asia Economy Reporter Kim Min-young] The National Credit Union Federation of Korea (NACUFOK) announced that it signed a "Business Agreement on the Operation of Special Loans for Social Economy Enterprises in Gyeonggi-do" with Gyeonggi Province on the 16th.

Through this agreement, NACUFOK will provide loans worth up to 100 billion KRW annually, totaling up to 500 billion KRW over five years, to social economy enterprises within Gyeonggi-do starting next month.

In this project, NACUFOK, as the operating institution, will execute loans through relaxed financial screening considering the social value of the applicant companies, while Gyeonggi Province will support interest payments up to 2.0% per annum based on social value evaluations. Selected social economy enterprises in the province (such as cooperatives, social enterprises, and village enterprises) can access loans at low interest rates around 1% for up to 10 years.

In particular, for social innovation projects that create significant social value by solving community issues such as care services and housing welfare, Gyeonggi Province and NACUFOK will jointly select projects, review applicant companies, support loan provision, and share part of the losses from executed loans.

At the signing ceremony, Gyeonggi Province Governor Lee Jae-myung stated, "NACUFOK, as a financial institution for ordinary citizens, has greatly contributed to improving the unfairness of existing finance," and added, "I was especially moved by NACUFOK's implementation of low-interest refinancing loans last year to help ordinary citizens suffering from high-interest loans."

Kim Yoon-sik, Chairman of NACUFOK, said, "We hope this project will greatly help alleviate the financial difficulties of social economy enterprises in the province, and NACUFOK will continue to strive to create social value and revitalize the local economy."