Diverse Support for Microfinance to Expand... Announcement of Revision to Microfinance Act Enforcement Decree

Expanding the Funding Scope of the Saemin Geumyung Jinheungwon

The Financial Services Commission has announced a legislative notice for the revision of the Enforcement Decree of the Act on Support for the Financial Life of the Underprivileged, which expands the scope of funds for establishing the Supplementary Account for Microfinance and the Self-Support Assistance Account?accounts used for major projects of the Microfinance Promotion Agency?to include contributions from local governments as well as entrusted project funds from the government and local governments.

Until now, project accounts have been funded by contributions and donations from the government or financial companies. Through this revision of the enforcement decree, various forms of microfinance support, such as collaboration between local governments and the Microfinance Promotion Agency on microfinance support projects, will become possible. The Financial Services Commission expects this to contribute to the active provision of policy microfinance through the Microfinance Promotion Agency.

The legislative notice for this revision will be conducted from the 23rd of this month until February 3rd of next year. Afterwards, it will go through procedures including review by the Ministry of Government Legislation, approval by the Deputy Prime Minister’s meeting and the Cabinet meeting, and is scheduled to be implemented within the first quarter of next year.

Yonhap News