Banks to Raise 500 Billion KRW Over 3 Years to Support Vulnerable Groups

[Asia Economy Reporter Buaeri] The banking sector will raise 500 billion KRW over the next three years to support vulnerable groups.

The Korea Federation of Banks' Social Contribution Council agreed on the 27th to allocate these funds to strengthen banks' fulfillment of social responsibilities, including donations for emergency living expense loan funds.

The Bank Social Contribution Council consists of 11 members, including the chairman of the Korea Federation of Banks, the heads of KB Kookmin, Shinhan, Hana, Woori, NH Nonghyup Bank, Industrial Bank of Korea, IBK, Citibank, SC First Bank, Busan Bank, and the CEO of KakaoBank.

This fund-raising initiative aims to proactively support vulnerable groups facing increased economic burdens due to deteriorating external conditions such as the recent global economic downturn. Domestic banks have independently contributed to solving social issues and creating social value. The total amounts were 1.1359 trillion KRW in 2019, 1.0929 trillion KRW in 2020, and 1.0617 trillion KRW in 2021.

This time, banks will raise a total of 500 billion KRW by allocating a portion of individual bank profits to support vulnerable groups. Follow-up procedures, such as finalizing support projects and partner organizations, will be carried out in the first half of the year to commence donations.

The plan includes supporting households and small business owners to prevent their exclusion from the formal financial sector and devising measures to alleviate financial burdens on small and medium-sized enterprises.

A Korea Federation of Banks official stated, "The banking sector will faithfully perform its fundamental role of supplying funds to the real economy and actively return the profits gained to society. We plan to continue efforts to coexist and grow together with our society."