[Report] "I Didn't Make a Reservation"... Even a 500,000 Won Loan Was Difficult for the 'Digital Disadvantaged'

Morning of the 5th visit to Seoul Yangcheon Seomin Financial Integrated Support Center
Middle-aged and elderly consultations missed due to no reservation "Internet application difficult"
Not easy to increase phone reservation channels due to staffing issues

"I tried to make a phone reservation, but the call wouldn't go through."

"If you don't have a reservation, there's nothing we can do for you."

"Then please tell me another way. I came all the way here."

On the morning of the 5th, at the Yangcheon Low-Income Financial Integrated Support Center in Yangcheon-gu, Seoul. Mr. Lee (68, male) came to the center for a 'small living expense loan,' but because he came without a reservation, he could not receive the loan. Regretting this, he could not leave and held onto a counseling staff member. Since the counseling booth staff had to attend to customers with reservations, Mr. Lee was handed over to another staff member who guided him on how to make a reservation through the Korea Inclusive Finance Agency website. Mr. Lee said, "They kindly guided me, but if I have to go home and do it again, I don't think I can do it alone," adding, "I don't know how to use a cellphone or computer, so phone calls are difficult and I feel helpless."

On the morning of the 5th at 9 a.m., I visited the Yangcheon Low-Income Financial Support Center in Yangcheon-gu, Seoul. Although it had only been open for a short time, customers seeking emergency livelihood loans were already receiving consultations at the counseling booths.
Photo by Hwang Seoyul chestnut@

The Korea Inclusive Finance Agency supports 'small living expense loans' for customers who have low credit and find it difficult to even use loan companies, forcing them to turn to illegal private loans. Citizens with credit scores in the bottom 20% and an annual income of 35 million KRW or less can borrow at an annual interest rate of 15.9%. For first-time users, loans up to 500,000 KRW per person are available, and if used normally for six months, an additional loan can be made once, allowing support up to 1 million KRW.

For citizens who were blocked from loans, such financial products were hope itself. Customers who came for living expense loan consultations that day said they visited the center for various reasons such as housing costs, living expenses, and hospital bills. Customers who completed loans left the center with light steps. During the two hours the reporter stayed at the center, customers of all ages and genders continuously came in.

However, there were several citizens like Mr. Lee who had to turn back because they could not make a reservation. Especially among them, most were middle-aged and elderly people vulnerable to digital technology. The Korea Inclusive Finance Agency accepts counseling reservations through its website or by calling 1397. Mr. Lee (63) said, "I tried calling several times to make a reservation, but the call was disconnected due to high call volume," and added, "I heard it can be done online, but I’m not good at that, so it’s hard to even try."

In front of the Yangcheon Community Financial Integrated Support Center in Yangcheon-gu, Seoul, there is a sign that reads "Consultation Reservation Required."
Photo by Hwang Seoyul chestnut@

The reporter taught Mr. Lee how to make a reservation online, but even reaching the personal information input stage was difficult. When he pressed to send the verification code for his cellphone authentication, Mr. Lee said, "The verification code doesn't come," and was confused for a long time. Although he moved on to the personal information input stage, he made several errors because the back digits of his resident registration number were encrypted, making it hard to verify the numbers. He barely got into the reservation page, but the reservations for that center were already full. In the end, Mr. Lee left for home, only saying, "I was trying to borrow money for living expenses."

There were also customers who thought they had completed reservations but came to the center only to find their reservations were not made and had to leave. Mr. Cha (65), who was looking for a loan for monthly rent, said, "I made a reservation on the computer, but I don’t know where it got lost," and added, "Today was a wasted effort."

The only easy way for the digitally vulnerable group to access is by phone, but even this is difficult to manage due to staffing issues. A Korea Inclusive Finance Agency official explained, "1397 is not only for emergency living expense loan reservations but also for other consultations, so calls are queued," adding, "Due to staffing issues, it is difficult to increase the phone reservation window." The official also added, "For customers who come from Wednesday to Friday, we assist with reservations through tablets or cellphones."