Ministry of SMEs and Startups and Financial Supervisory Service Collaborate to Improve Financial Environment for Traditional Market Merchants

The Ministry of SMEs and Startups announced on the 5th that it has signed a business agreement with the Financial Supervisory Service to improve the financial environment for traditional market merchants.

Key points of the agreement include supporting the 'Janggeum (場金) Partnership' between traditional markets and financial institutions to prevent financial fraud targeting traditional market merchants and to establish customized financial consultation desks. The term Janggeum combines 'Jang (場)', meaning market, and 'Geum (金)', meaning financial institution. It also shares the name with a royal court nurse from the Joseon Dynasty, symbolizing healing difficulties through finance.

The two organizations plan to establish a rapid response system by creating a hotline between traditional markets and bank branches to prevent financial fraud and provide swift damage relief. They will also develop measures for branches to offer tailored consultation services such as policy fund loans.

Additionally, financial fraud prevention education will be conducted for traditional market merchants and local small business owners. The Financial Supervisory Service will jointly operate the Financial Sarangbang Bus with regional SME offices to support vulnerable borrowers and provide consultations on financial difficulties including financial fraud damage.

Following the business agreement, the Ministry of SMEs and Startups and the Financial Supervisory Service also signed a partnership agreement between Woori Bank, the first Janggeum partner, and Gwangjang Market.

Lee Young, Minister of SMEs and Startups, stated, “Many traditional market merchants are elderly and vulnerable to financial fraud, so this agreement is significant in providing them with minimal safeguards. The Ministry will continue to cooperate with the Financial Supervisory Service to create an environment where traditional market merchants can access financial services easily and safely.”

Lee Bokhyun, Governor of the Financial Supervisory Service, said, “We expect this agreement to contribute to creating a safe and healthy Korea free from financial fraud through rapid responses by traditional markets and financial companies. We hope the Janggeum partnership will serve as a foundation for mutually supportive and growing win-win finance between traditional markets and financial companies.”

The two organizations plan to expand the ‘Janggeum Partnership’ to local traditional markets with relatively insufficient financial infrastructure in the future.