The Korea Inclusive Finance Agency announced on the 12th that it has signed a business agreement with the Korea Credit Information Services and the Korea Social Security Information Service to further identify welfare blind spots.
The Korea Inclusive Finance Agency signed a business agreement on the 11th to expand the discovery of welfare blind spots. (From left) Kim Hyun-jun, President of the Korea Social Security Information Service; Lee Jae-yeon, President of the Korea Inclusive Finance Agency; Choi Yoo-sam, President of the Korea Credit Information Services. Provided by Korea Inclusive Finance Agency.
Under this agreement, financial information such as applicants rejected for inclusive finance and personal loan information related to inclusive finance will be included in the information used to identify households in crisis. This is a follow-up measure to the financial, employment, and welfare integrated support plan announced by the Financial Services Commission last year, characterized by strengthening the linkage between finance and welfare to identify welfare crisis households.
The information used to identify households in crisis, which previously consisted of 45 types such as power and water cutoffs and overdue electricity and gas bills, will be expanded to 47 types by additionally including information on vulnerable borrowers, such as those in the bottom 20% credit score among customers consulting at the Inclusive Finance Integrated Support Center who were rejected due to lack of repayment ability, and policy inclusive finance loan information of financial delinquents from the Korea Credit Information Services.
Since October last year, the Korea Inclusive Finance Agency has been providing a 0.5 percentage point interest rate reduction benefit to users of illegal private loan prevention loans (formerly small living expense loans) who have enrolled in the Welfare Membership, a customized welfare benefit guidance program by the Ministry of Health and Welfare. The agency plans to actively utilize this by supporting system development to ensure smooth linkage of crisis household identification information among related organizations and guidance on the Welfare Membership, thereby helping to uncover welfare blind spots.
Lee Jae-yeon, President of the Korea Inclusive Finance Agency, stated, "We plan to continue cooperation among related organizations to build a dense social safety net."
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