K Bank Launches Haepssalon15 to Expand Inclusive Finance

Maximum Limit of 20 Million Won... Fixed Annual Interest Rate of 15.9%
Annual Interest Rate Reduction of 1.5% to 3.0% for Timely Repayment

On July 31, K Bank announced the launch of "Haepssalon15," a policy-based inclusive finance product guaranteed by the Korea Inclusive Finance Agency. This initiative is part of K Bank's ongoing efforts to expand inclusive finance by providing funds at reasonable interest rates to low-credit individuals with limited access to traditional financial services.

Haepssalon15 is a policy-based inclusive finance product designed to support individuals with the lowest credit ratings who are otherwise forced to rely on high-interest loans from private lenders or illegal financial services with interest rates exceeding 20%. Applicants are eligible if they have an annual income of 35 million won or less, or if their annual income is 45 million won or less and they fall within the bottom 20% of personal credit scores, provided they receive guarantee approval from the Korea Inclusive Finance Agency.

The maximum loan amount is 20 million won, with a fixed annual interest rate of 15.9%. The repayment period is either three or five years, with equal monthly installments of principal and interest. Borrowers who make timely repayments are eligible for annual interest rate reduction incentives. For loans with a three-year term, the interest rate is reduced by 3.0 percentage points each year; for five-year term loans, the rate is reduced by 1.5 percentage points annually.

With the launch of Haepssalon15, K Bank has further strengthened its lineup of loan products for financially vulnerable groups. In the first half of this year, K Bank introduced a Business Closure Support Refinancing Loan in April and the Restart Loan in June to support self-employed individuals. These products allow small business owners who have closed or are about to close their businesses to convert existing business loans into low-interest, long-term installment household loans, enabling them to repay their debts gradually even after business closure.

Additionally, K Bank has signed agreements with 10 local governments to offer guaranteed loan products for local self-employed individuals and small business owners, including the "Sajangnim Guaranteed Loan" and "Sajangnim Ontact Guaranteed Loan." Analysis of the guaranteed loan executions for sole proprietors in the second quarter of this year showed that 65% of all customers were classified as mid- to low-credit borrowers.

K Bank also operates "Saitdol Loan," a policy finance product guaranteed by Seoul Guarantee Insurance, designed for mid- to low-credit borrowers.

A K Bank representative stated, "In the first quarter, we achieved a 35% share of credit loans to mid- to low-credit borrowers, and we are committed to supplying funds to financially vulnerable groups such as mid- to low-credit individuals and small self-employed business owners." The representative added, "We will continue to introduce a variety of support products for ordinary citizens, underpinned by advanced data-driven credit scoring models (CSS) to ensure both inclusivity and soundness."