"Customized Financial Support for Vulnerable Local Populations Becomes Possible"

Briefing Session Held to Promote KIFA Consignment Projects by Local Governments
Expansion of Legal Grounds to Enable More Inclusive Finance Initiatives
Local Governments Empowered to Design Tailored Support for Vulnerable Groups

The Financial Services Commission and the Korea Inclusive Finance Agency (KIFA) announced on the 19th that they held a briefing session to promote KIFA consignment projects by local governments.

The briefing session, held in the afternoon at KIFA in Jung-gu, Seoul, was attended by officials from the Financial Services Commission, KIFA, Gangwon Special Self-Governing Province, Gwangju Metropolitan City, and eight other local governments.

According to the Financial Services Commission, some local governments, including Gyeongnam Province, have expressed interest in implementing financial support projects for local residents (low-income and vulnerable groups) through KIFA consignment projects. However, due to insufficient legal grounds regarding the operation of consignment project funds by local governments, they faced difficulties in advancing these projects.

However, with the enforcement of the amended "Inclusive Finance Act Enforcement Decree" on the 21st, the scope of funding sources for inclusive finance will be expanded to include consignment project funds from local governments, enabling the securing of additional resources for the stable supply of inclusive finance.

This amendment establishes a legal basis allowing local governments to autonomously entrust project funds and design tailored projects necessary for their communities, thereby effectively providing financial support. Local governments will be better equipped to offer more practical financial assistance targeted at low-income and vulnerable groups in their regions.

The briefing session served as an opportunity to share policy implications of the enforcement decree amendment and the expanded role of local governments, as well as to explore future cooperation plans. In-depth discussions were held on how to effectively implement customized projects suited to the characteristics and circumstances of each region with local government officials.

Kim Kwang-il, Director of Inclusive Finance at the Financial Services Commission, expressed, "Based on the amended enforcement decree, each local government can selectively devise customized project models according to regional characteristics, allowing inclusive finance to take deep root in local communities." Choi In-ho, Vice President of KIFA, stated, "We ask for much interest and support from local governments so that, based on the strengthened legal foundation and through local government linkages, practical policy inclusive finance can be provided to those in need in local communities."