Banks to Contribute 221.4 Billion Won to the Korea Inclusive Finance Agency

As Part of the Banking Sector's Voluntary Program for Supporting People's Livelihood Finance

Nine domestic banks will newly contribute 221.4 billion KRW to the Korea Inclusive Finance Agency as part of the Livelihood Finance Support Plan voluntary program.

The Korea Federation of Banks and nine banks (KB Kookmin, Shinhan, Hana, Woori, IBK Industrial, SC First, Korea Citi, Gwangju, Kakao) signed the "Banking Sector Contribution Agreement to Strengthen the Inclusive Finance Support System" with the Korea Inclusive Finance Agency at the Bankers' Hall in Jung-gu, Seoul on the afternoon of the 22nd.

Cho Yong-byeong, former chairman of Shinhan Financial Group, has been selected as the final candidate for the next chairman of the Korea Federation of Banks. The photo was taken on the 16th at the Korea Federation of Banks building in Jung-gu, Seoul. Photo by Kang Jin-hyung aymsdream@

This agreement is part of the Livelihood Finance Support Plan voluntary program announced by the banking sector on the 27th of last month. It involves contributing 221.4 billion KRW as funding for the Korea Inclusive Finance Agency’s core purpose projects to meet the financial needs of vulnerable groups and support the stable operation of the inclusive finance support system, as well as promoting mutual cooperation between the banking sector and the Korea Inclusive Finance Agency for financial support to vulnerable groups.

The contribution will be shared by the nine participating banks, with each bank’s contribution set at about 40% of its voluntary program funds. Hana Bank’s contribution is the largest at 61.2 billion KRW.

Through this contribution to the Korea Inclusive Finance Agency, the banking sector expects to strengthen the livelihood finance support system by providing more robust financial support to low-income and vulnerable groups, which require strict risk management and are difficult for individual banks to support alone, covering borrowers from medium- and low-credit to those with delinquencies or delinquency concerns.

The Korea Federation of Banks stated, “After signing this agreement, each bank plans to promptly execute the contribution following internal approval procedures such as board resolutions for the contribution to the Korea Inclusive Finance Agency. Furthermore, we will continue to expand mutual cooperation with the Korea Inclusive Finance Agency to ensure that the contributed funds are effectively used for inclusive finance support and that the banking sector’s inclusive finance support activities are practically beneficial.”