Participation in the Minsheng Financial Support Voluntary Program
KakaoBank announced on the 23rd that it will contribute 8 billion KRW to the Korea Inclusive Finance Agency to participate in the ‘Voluntary Program for Livelihood Finance Support.’
The contribution will be used to support financially vulnerable groups. It will be used to supply additional policy livelihood finance products guaranteed by the Korea Inclusive Finance Agency, such as the Sunshine Loan 15.
In January, KakaoBank announced a plan to support 37.2 billion KRW targeting self-employed individuals and small business owners as part of the ‘Banking Sector Livelihood Finance Support Measures.’ It plans to operate an interest support program for customers holding personal business loans and run the ‘Voluntary Program for Livelihood Finance Support’ for financially vulnerable groups.
To operate this program, a ‘Win-Win Finance Task Force (TF)’ was newly established. This TF integrates and manages win-win finance-related tasks that are individually promoted by each business division. Following the contribution to the Korea Inclusive Finance Agency, it has prepared measures to provide robust support for financially vulnerable groups such as personal business owners, small business owners, youth, and the elderly.
First, KakaoBank will support half of the guarantee fee for customers using personal business owner guaranteed loans. Customers who additionally execute the ‘Personal Business Owner Interest Support Guaranteed Loan’ can receive the guarantee fee reduction benefit up to twice a year. The inclusive finance efforts for local small business owners will continue as well. Last year, through agreements with eight regional credit guarantee foundations, KakaoBank contributed 3 billion KRW to support approximately 50 billion KRW worth of win-win agreement guaranteed loans for small business owners. This year, it plans to further expand the eligible regions, increase the scale of agreements, and raise the contribution amount.
It will also support rent and heating costs for micro small business owners and operate programs such as the ‘Youth IT Coding Education Program’ and the ‘Senior IT Education and Financial Fraud Prevention Education Program.’
A KakaoBank official said, “We decided to contribute to the Korea Inclusive Finance Agency to share the difficulties of financially vulnerable groups suffering from the economic downturn. We will strengthen inclusive finance activities through various efforts such as this contribution, support for personal business owners’ guarantee fees, and agreements with regional credit guarantee foundations.”
On the 22nd, at the 'Banking Sector Community Finance Promotion Agency Contribution Agreement Ceremony' held at the Bankers Hall in Jung-gu, Seoul, Lee Hyung-joo (left), Chief Business Officer of KakaoBank, Cho Yong-byeong (center), Chairman of the Korea Federation of Banks, and Lee Jae-yeon, President of the Community Finance Promotion Agency, are taking a commemorative photo. Photo by KakaoBank
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