Policy-Based Microfinance Hits Record High of 10.7 Trillion Won This Year, Up 9.3%

The Financial Services Commission announced on December 28 that it had provided a provisional total of 10.7 trillion won in policy-based microfinance support for low-income and vulnerable groups this year. This represents a 9.3% increase from the previous year, marking an all-time high.

Breaking down the details, compared to the previous year’s supply figures: Sunshine Loan Bank increased by 9.2% (113.9 billion won); Special Guarantee for Lowest Credit Holders rose by 194.4% (194.8 billion won); Sunshine Loan Card grew by 28.7% (7.8 billion won); Saeheum Hope Loan expanded by 43.9% (1.0309 trillion won); and Business Sunshine Loan was up by 7.5% (9.8 billion won).

In addition, this year, the government identified financial blind spots and launched micro livelihood loans to alleviate funding difficulties for vulnerable groups. It also expanded the supply of special guarantees for lowest credit holders by 140 billion won and increased the guarantee limits for diligent Sunshine Loan Card users. Notably, the Special Guarantee for Lowest Credit Holders was launched at all 11 financial institutions as originally planned, thanks to ongoing encouragement efforts.

The Financial Services Commission stated, "Next year, we will continue to provide policy-based microfinance to ease the financial burden on low-income and low-credit vulnerable groups, and we plan to seek improvements to policy-based microfinance so that users can better feel the impact of this support."