23,000 People Apply for Small Livelihood Loans... 14.3 Billion Won Support Provided

On the 27th, citizens visiting the Jung-gu Central Microfinance Integrated Support Center in Seoul applied for loans from a small living expense loan product offering up to 1 million won with an annual interest rate of up to 15.9%. Photo by Kang Jin-hyung aymsdream@

Small emergency living expense loans, which lend up to 1 million KRW on the same day to vulnerable groups, have surpassed 14.3 billion KRW within a month of their launch.

According to the Financial Services Commission and the Korea Inclusive Finance Agency on the 1st, since the launch of the small emergency living expense loan on March 27, loan applications totaled 23,532 people, and the total loan amount reached 14.33 billion KRW as of the 26th of last month.

The average loan amount per person was 610,000 KRW. There were 17,940 cases of 500,000 KRW loans, and 5,592 cases where loans exceeding 500,000 KRW were issued with specific fund usage such as housing and medical expenses verified. This indicates that many vulnerable groups find it difficult to secure even 1 million KRW immediately.

The Financial Services Commission explained that the small emergency living expense loan serves not only as a simple channel for quick cash loans but also supports the economic independence of vulnerable groups by linking with welfare and employment support. In fact, the total number of combined consultations was 23,474 cases, including debt adjustment (8,456 cases), welfare linkage (4,677 cases), and employment support (1,685 cases).

As the small emergency living expense loan continues to see bittersweet popularity, voices are rising, mainly from the ruling party, calling for an increase in the loan limit and a reduction in the interest rate (annual 15.9%). Regarding this, Kim Joo-hyun, chairman of the Financial Services Commission, said, "Since the small emergency living expense loan is a new system, we are internally reviewing what the meaning of this system is and how it should be managed going forward."