Segeumwon Supports 497 Million KRW in Interest Costs for Microfinance Users Last Year

A 51% Increase Compared to the Previous Year
Expansion of Participating Local Governments and Regional Microfinance Corporations in Interest Support Project Planned for 2025

The Korea Inclusive Finance Agency announced on the 12th that it supported a total of 6,977 cases and 497 million KRW in interest costs for users of Microfinance loans last year.

Microfinance is a policy financial product for low-credit and low-income self-employed individuals. It has selected 11 companies and bank microfinance foundations and 27 regional microfinance corporations as project execution agencies, providing loans through 166 branches nationwide.

In addition, in collaboration with local governments in each region, it supports interest costs of up to 4.5% per annum for Microfinance loan users through interest support projects.

Starting from Iksan-si, Jeonbuk in August 2021, a total of 12 local governments nationwide participated by the end of last year, including Geoje-si, Gyeongnam; Goesan-gun, Chungbuk; Gyeongju-si, Gyeongbuk; Gyeyang-gu, Incheon; Gwangju Metropolitan City; Cheongju-si, Chungbuk; Guri-si, Gyeonggi; Chuncheon-si, Gangwon; Andong-si, Gyeongbuk; Cheonan-si, Chungnam; and Taebaek-si, Gangwon.

Since the project started in 2021, the scale of support has been continuously expanded, providing a total of 945 million KRW until last year. Notably, in 2024, four new local governments joined, increasing support by 51% compared to the previous year to 497 million KRW, contributing to alleviating the financial burden of low-credit and low-income small business owners.

In 2025, the plan is to actively support the reduction of interest costs for small business owners in each region by expanding the participating local governments and regional microfinance corporations in the interest support project, including Busan Metropolitan City and the Microfinance Busan Jung-gu and Suyeong-gu corporations, as well as Jeonju-si, Jeonbuk and the Jeonbuk Jeonju corporation.

Lee Jae-yeon, the director, said, "I am grateful to the local governments actively participating in the interest support project to reduce the financial burden on the vulnerable and low-income groups during these increasingly difficult economic conditions due to high interest rates, rising prices, and domestic economic downturn." He added, "It is meaningful that local governments and microfinance project execution agencies have joined hands for small business owners in each community, and I hope this will spread to more regions."

If you need Microfinance consultation, you can inquire through the Korea Inclusive Finance Agency website, the Seomin Geumyung Itda application, or the Seomin Geumyung call center.