Korea Inclusive Finance Agency Launches Local Government-Tailored Financial Products

Financial Services Commission Approves Consignment Project Operations
KIFA to Launch "Gyeongnam Companion Loan" in Collaboration with Gyeongsangnam-do
Expanding Customized Inclusive Finance Through Local Government Partnerships

The Financial Services Commission has approved a proposal at its 9th regular meeting to allow the Korea Inclusive Finance Agency (KIFA) to be entrusted by local governments to carry out inclusive finance support projects.

Following this approval, KIFA will launch its first local government collaboration project next month by introducing the "Gyeongnam Companion Loan" in partnership with Gyeongsangnam-do through a consignment agreement. The "Gyeongnam Companion Loan" is a local government-tailored inclusive finance product, in which KIFA is entrusted by Gyeongsangnam-do to utilize the province's financial resources to provide livelihood stabilization funds to financially vulnerable residents within the province.

With this approval, KIFA can now be entrusted by local governments not only with specialized credit loan and guarantee products, but also with a variety of financial and non-financial support projects, including interest subsidy programs, financial counseling, education, employment support, and welfare system guidance.

The Financial Services Commission stated, "We expect that, starting with the collaboration between KIFA and local governments, customized inclusive finance that takes into account the economic situation and characteristics of each region will be expanded, and we will continue to provide support for this."