[Exclusive] KIFA Implements Lee Administration’s Policy Agenda... Expands Loans for Social Enterprises

2026 Work Plan
Development of Evaluation Models Utilizing Alternative Non-Financial Data
Leading the Way in Inclusive Finance

The Korea Inclusive Finance Agency (KIFA) will increase the scale of loans related to social enterprises to support the "Growth of the Social Solidarity Economy," one of the key policy tasks of the Lee Jaemyung administration. In addition, to strengthen inclusive finance as emphasized by the government, KIFA will also develop an evaluation model utilizing alternative non-financial data.

According to the office of National Assembly member Lee Jeongmoon, a member of the National Policy Committee, on January 9, KIFA submitted its "2026 Work Plan" to the Financial Services Commission. This year, KIFA will expand the scale of loans to social enterprises from the existing 6 billion won to 15 billion won in order to vitalize social finance. The agency will also seek to discover and select new private organizations to carry out loan programs.

Since 2018, KIFA has been providing loans to social enterprises and social cooperatives through implementing agencies such as Smile Microcredit Foundation and bank-affiliated foundations. Smile Microcredit refers to microfinance programs that support business start-up and operating funds for vulnerable groups who have difficulty accessing institutional finance due to lack of collateral or credit. For the Smile Microcredit social solidarity finance loans handled by KIFA, the eligible recipients are social enterprises or cooperatives with annual sales of 500 million won or less. The maximum loan amount is 100 million won, with an interest rate of up to 4.5% per year.

KIFA will also develop an evaluation model that utilizes alternative non-financial data. The plan is to develop a non-financial inclusive alternative credit evaluation model (tentative name) and apply it to loan screening for products handled by KIFA. The evaluation model will take into account factors such as the repayment reliability of individuals with the lowest credit scores or platform workers, completion of financial education, and whether the applicant has used KIFA consulting services.

In addition, KIFA will improve the assessment of repayment ability using alternative non-financial data. Previously, the integrated credit evaluation model added a score calculated from alternative data as a bonus point. In the revised plan, alternative data will be used to further identify consumers whose guarantees have been declined. Through this, KIFA aims to strengthen support for low-credit individuals while reducing the loan limits for high-net-worth individuals to minimize moral hazard.

KIFA will also expand consulting services for young people and self-employed individuals. The youth financial consulting function for users of the Youth Leap Account will be expanded and reorganized as "Financial Counseling for All Youth." For example, KIFA will provide financial counseling based on its integrated support centers and offer on-site consulting through designated consultants. For the self-employed, KIFA plans to establish a "KIFA Self-Employed Support Center" to create an environment that supports non-face-to-face consulting, such as tax, labor, legal, and business diagnosis consulting. The agency is also considering providing credit and debt management consulting for groups vulnerable to credit management, such as military personnel, newly commissioned officers, and individuals with restored credit.

The dormant deposit recovery service will also be strengthened. Financial consumers can reclaim dormant deposits contributed to KIFA, and for small amounts, the agency is considering a plan to convert and pay them out as Pay Money through simple payment services.

Meanwhile, KIFA has set this year's policy inclusive finance supply at 6.81 trillion won, the same as last year. Unlike last year, however, the supply of general guarantee for Sunshine Loans will be reduced by 1 trillion won, while the supply of special guarantee will be increased by 1 trillion won.