[Issue Interview] Retirees Transformed into Credit Counselors... The New Path Laid by 'Senior Bridge'

Kim Yong-deok, Chairman of Social Solidarity Bank

As South Korea enters a super-aged society, the lives of seniors are entering a new phase. Last year, the population aged 65 and over exceeded 10 million, surpassing 20% of the total population, marking the full onset of a super-aged society in our country. The question of how to plan life after retirement and how to sustain life amid economic difficulties is emerging as a social issue beyond individual concerns. This issue is especially urgent in South Korea, where the elderly poverty rate is higher than in other countries.

Kim Yong-deok, Chairman (71), who has led the Social Solidarity Bank since 2012 after serving as Executive Director of Seoul Guarantee Insurance, CEO of SGI Credit Information and KCB (Korea Credit Bureau), is creating meaningful change by leveraging his experience as a retiree from the financial sector. In particular, through the 'Senior Bridge Project,' he has provided a path for retirees from the financial sector to contribute to society by utilizing their expertise.

The Social Solidarity Bank is a nonprofit organization established to support financially marginalized and vulnerable groups, offering various financial and non-financial services to help individuals and small business owners achieve self-reliance and recovery. It aims not only to provide funds but also to create sustainable social value through multifaceted approaches such as education, consulting, and network building. In an interview at the office in Jongno-gu, Seoul, on the 6th, Chairman Kim emphasized the social value created by seniors' expertise, saying, "Retirees who became credit counselors through the Senior Bridge Project are actively working at the Korea Inclusive Finance Agency and Credit Guarantee Foundations to assist financially vulnerable groups."

Kim Yong-deok, Chairman of the Social Solidarity Bank, is being interviewed by Asia Economy at his office in Jongno-gu, Seoul on the 6th. Photo by Park Yoo-jin

- Please tell us about the situation when KCB was established and the significance of personal credit evaluation. I understand your interest in inclusive finance started here.

▲ In 2003, the Financial Services Commission judged that South Korea needed a personal credit evaluation company, and KCB was established with joint investment from 18 domestic banks. At that time, companies like NICE Information Service and KIS Asset Evaluation existed, but personal credit evaluation was very primitive, and there was no system to evaluate the credit of the entire population. Only some information from banks was available; there was no information from card companies or other financial sectors. We built a Korean-style credit evaluation system within a year with advice from the U.S. Fair Isaac Corporation (FICO). Initially, we thought that evaluating the credit of the entire population would allow everyone to receive financial services under good conditions. However, after starting the service, we observed that people with poor credit actually had reduced access to finance. Previously, because information was not shared, some financial institutions would lend to them, but now they could not get loans anywhere. This made me realize that 'inclusive finance' was truly necessary.

- How did your connection with the Social Solidarity Bank begin?

▲ At the end of 2006, while serving as CEO of KCB, I happened to attend a fundraising night event for the Social Solidarity Bank. At that time, I was inspired by Dr. Muhammad Yunus, founder of Bangladesh's Grameen Bank, and his book "Banker to the Poor." Coupled with my experience at KCB, I thought, "This could be one solution." So, we started sponsoring the organization at the company level, and from 2009, I served as a non-executive director. In 2012, when then Chairman Lee Jong-su moved to become chairman of the Seoul Social Investment Fund, I took over as chairman. Although I had other offers initially, I chose the Social Solidarity Bank with the thought, "I want to stop working just to make money."

- You are promoting the 'Senior Bridge Project,' which has produced nearly 1,000 graduates over more than 10 years. What are the achievements and significance of this project?

▲ The project started the year after I became chairman. The Senior Bridge Project, launched in 2013, initially began as an educational program to prepare retirees for their second act in life. However, from the second year, we started supporting participants to form their own groups and engage in activities. As a result, several organizations such as 'Hope Sharing World' and 'Encore Bravo' were created and continue to be active today.

One particularly meaningful development was the introduction of the credit counselor course around 2014. After taking the exam myself to understand its difficulty, I encouraged many Senior Bridge students, many of whom had financial sector backgrounds, to obtain certification. As a result, many earned certificates and are working as contract or volunteer experts at the Korea Inclusive Finance Agency, Credit Guarantee Foundations, and others. Most key members of the Credit Counselors Association today come from this project. This has provided new jobs for seniors and opportunities to contribute to society.

- How did this project spread?

▲ When Seoul established the '50 Plus Foundation' in 2016, they benchmarked our Senior Bridge Academy. The foundation's first chairman was Yoon Man-ho, former chairman of Korea Development Bank Financial Group, who proposed our project, the CEO was Lee Kyung-hee, a former professor at Chung-Ang University and one of our instructors, and the head of the foundation was a graduate of our program. It can be said that they completely copied our program to start. This is significant as it shows that we proactively started socially necessary work, which then expanded into the public sector.

- You could be called the 'godfather' of the personal credit evaluation industry. Are you also involved in alternative credit evaluation projects for the elderly?

▲ We can say we were the first to attempt alternative credit evaluation. Based on $250,000 from the Google Impact Challenge social innovation project and $250,000 sponsorship from Citibank, we collaborated with the U.S. company Lendo to develop an alternative credit evaluation model. Most elderly are 'thin filers' with little or no financial transaction history or suffer disadvantages in credit evaluation due to past delinquencies. However, due to data scarcity and difficulties in maintenance and development, we did not operate it directly. Instead, this led to the birth of specialized alternative credit evaluation companies like 'Crepas Solution,' and I believe it raised awareness of alternative credit evaluation.

- The number of elderly falling into credit delinquency due to inability to repay debts is clearly increasing. How should we solve the financial problems of the elderly?

▲ Poverty among those aged 65 and over is a major challenge for our society. It is a reality that elderly in South Korea are particularly poor compared to other countries. There needs to be some social responsibility for elderly with poor credit who need money. Loans fundamentally require repayment, but it is practically difficult for those who did not earn much when young to earn money and repay debts in old age. Therefore, while not blanket debt forgiveness, there should be institutional mechanisms to carefully review individual cases and selectively provide debt relief or support where needed.

- What are your future plans and goals?

▲ I want to create a collaboration model between seniors and youth. Combining seniors' networks, experience, and know-how with the creativity and drive of young people can create new value. Although our Social Solidarity Bank can only help dozens of seniors each year, I find fulfillment seeing them exert positive influence on society. Personally, I live by the motto "Live with peace of mind." This does not mean just a comfortable life but living honestly, uprightly, and without shame. Although what we can do is limited, I want to contribute to making our society a little warmer and fairer.