Woori Financial Group to Provide Additional 150 Billion KRW Support to Outstanding Loan Companies

An Additional 15 Billion Won Contributed to Seogeumwon

Woori Financial Group has decided to strengthen support for excellent loan companies and expand contributions to microfinance institutions to assist low-income and low-credit individuals who are in financial blind spots.

On the 29th, Woori Financial announced that Woori Bank, Woori Financial Capital, and Woori Savings Bank will collectively provide an additional 150 billion KRW to outstanding loan companies, and also contribute an additional 15 billion KRW to the Korea Inclusive Finance Agency as part of an additional support plan for microfinance.

First, the three Woori Financial subsidiaries engaged in lending operations will pool 150 billion KRW to implement “low-interest fund support for loan companies,” focusing on 19 excellent microfinance loan companies selected by the Financial Services Commission. The support amounts by subsidiary are 42 billion KRW from Woori Bank, 100 billion KRW from Woori Financial Capital, and 8 billion KRW from Woori Savings Bank.

Earlier, in April, Woori Bank signed a business agreement with the Korea Financial Services Association to support funds for excellent microfinance loan companies and had provided 96.3 billion KRW by the end of September. Woori Savings Bank also supported 7.6 billion KRW to selected excellent loan companies by the end of September. With the additional 42 billion KRW support from Woori Bank this time, the total support amounts to 138.3 billion KRW. Woori Bank plans to increase credit supply to low-income individuals by applying a preferential interest rate of up to 1.5% to excellent loan companies selected by the authorities and the bank itself, thereby reducing interest burdens.

Separately, Woori Bank will contribute an additional 15 billion KRW to the Korea Inclusive Finance Agency. These contributions will mainly be used as funds for microfinance loans such as small living expense loans and recovery support loans, with some also allocated to projects aimed at monitoring illegal private loans and eradicating financial fraud. Woori Bank plans to invest a total of 51.3 billion KRW in microfinance, combining the 36.3 billion KRW already contributed by September with the additional 15 billion KRW, to help resolve liquidity issues for financially vulnerable groups.

A Woori Bank official stated, “To alleviate financial difficulties for low-income and low-credit individuals and prevent damage from illegal private loans, continuous credit supply to excellent loan companies is necessary,” adding, “We will increase careful and effective support for low-income individuals struggling in financial blind spots.”