Financial Services Commission: "Expanding Funding Supply for Medium and Low Credit Borrowers... Strong Response to Illegal Private Loans"

Vice Chair Kim So-young Holds Meeting to Review Financial Support Status for Low-Income and Vulnerable Groups

Kim So-young, Vice Chairman of the Financial Services Commission, stated on the 29th, "We will continuously monitor the supply of funds to middle- and low-credit borrowers," and added, "We will respond through organic cooperation among related agencies to ensure that the public does not suffer from illegal private loans and other livelihood crimes."

Kim So-young, Vice Chairman of the Financial Services Commission, is delivering opening remarks at the "Domestic ESG Disclosure Standards On-site Meeting" held on the 14th at the Korea Chamber of Commerce and Industry in Jung-gu, Seoul. Photo by Kang Jin-hyung aymsdream@

Vice Chairman Kim attended the ‘Status Check Meeting on Financial Support for Low-Income and Vulnerable Groups’ held at the Credit Recovery Committee in Jung-gu, Seoul, and said, "Considering the recent difficult livelihood economic conditions, it is more important than ever for financial authorities and the industry to work together to provide stronger protection for financial consumers."

At the event, Vice Chairman Kim listened to recent financial usage difficulties experienced by low-income and vulnerable groups in the field and conveyed encouragement and requests regarding the support efforts of each institution.

Participants in the on-site meeting shared the current status and cases of financial support for low-income and vulnerable groups in the financial sector and reached a consensus on the need to continuously expand fund supply for them. For example, KB Kookmin Bank introduced a program (approximately 100 billion KRW scale) that can expand credit supply to low-credit groups through excellent low-income financial lenders.

Additionally, the attendees emphasized the need to strengthen publicity so that citizens do not unknowingly suffer from illegal private loans and illegal debt collection, and to improve the accessibility of low-income financial support systems, debtor representation, and litigation support systems so that more people can use them.

Vice Chairman Kim stated, "We will continue to expand policy-based low-income financial supply targeting low-income and vulnerable groups, and encourage financial companies and excellent lenders to actively supply funds to middle- and low-credit borrowers."

Along with this, financial authorities and related agencies agreed to further strengthen cooperation among agencies as concerns over consumer damage from illegal private loans and other livelihood infringement crimes persist.

First, through coordination between financial authorities and related agencies, they decided to promote precautions to prevent damage from illegal private loans through various channels. They also plan to activate the Financial Supervisory Service’s lawsuits to nullify antisocial illegal loan contracts and, together with related agencies, swiftly block and crack down on illegal online financial investments and voice phishing advertisements.

Since the debtor representation support project secured the largest budget this year (1.255 billion KRW), they plan to more actively identify and support those at risk of damage. In particular, they will consider ways to provide free legal services related to illegal debt collection responses not only to the debtors themselves but also to their family members, acquaintances, and other related parties. This reflects the fact that ‘acquaintance collection’ accounts for the largest proportion (60.1%) of illegal collection types.

Vice Chairman Kim said, "We will strongly respond in cooperation with related agencies to livelihood infringement crimes such as deepfake and impersonation illegal financial investment fraud and illegal private loans," and added, "We will continue to actively listen to suggestions from the field and promptly reflect them in policies."