[Economy Pulse]70 Trillion Won in Inclusive Finance by the Top 5 Financial Groups: The Formula for Voluntary Implementation Success

Mainstream Credit Conversion and Reduced Re-delinquency Are Key
Holding Company-Level Governance and Tailored Management Essential

The Financial Services Commission has presented three major directions for the inclusive financial transformation in 2026: enhancing financial accessibility and alleviating financial cost burdens, providing swift support for recovery, and strengthening the financial safety net. The success of inclusive finance depends on whether these policies truly 'reach' the field. Even if more policies are introduced, if they are not tangibly felt on the ground, the blind spots of inclusive finance will not diminish, and this gap is difficult to bridge with government policy tools alone. In this context, the five major financial holding companies have stepped forward as the main implementers, unveiling plans to expand inclusive finance by approximately 70 trillion won over the next five years.

The key now is to ensure that this plan does not remain a slogan, but actually reaches those in need on the ground and is established as a sustainable operating model. The government must design performance standards, evaluation systems, and incentives. The financial sector must implement these as internal key performance indicators (KPIs) and operational systems, while the private sector should support 'completion' through on-site case management. When these three elements work in tandem, inclusive finance will be sustained through effective implementation, and its outcomes must be confirmed by a 'perceptible change'-an increased sense of financial security and satisfaction in the lives of financial consumers.

So, what should be considered as the performance indicators for inclusive finance? Ultimately, the report card for inclusive finance is revealed through four pillars. First, it is the conversion rate-whether individuals who have faithfully repaid policy-based loans for the underprivileged have actually transitioned to institutional credit. Next are the settlement indicators: whether the re-delinquency rates at 6 and 12 months after conversion are low, and whether the early warning system (EWS) is functioning to ensure timely connection to counseling and readjustment. Taking it a step further, if reductions in interest rates and total debt, as well as recovery of income or sales within possible ranges, are observed, it can be said that the 'power to recover' has been established. Lastly, it is essential to check whether the safety net is functioning properly-whether illegal private lending and unlawful collection have been blocked, and whether individuals have been effectively connected to debtor representatives and relief systems.

These four pillars measure 'real change' such as increased transitions, reduced re-delinquency, alleviated interest and debt burdens, and prevention of illegal collection, rather than simply the volume of supply. As these outcomes accumulate, inclusive finance becomes increasingly evident as a management achievement that simultaneously lowers risk, cost, and reputational concerns within financial holding companies. Thus, inclusive finance becomes the most direct proof of the 'S' in ESG (Environmental, Social, and Governance) management in the financial sector. When inclusive finance is properly executed, ESG is no longer just words in a report, but is confirmed through tangible results such as reduced defaults and complaints and increased trust capital. To ensure sustainable implementation, mechanisms at the holding company level are necessary. Inclusive finance should be included as a board supervision agenda, and conversion and settlement-focused indicators should be directly linked to the KPIs of CEOs and executives. Only then will inclusive finance become not just an accessory to ESG management, but a core operational system driving the management of financial holding companies.

Finally, inclusive finance is not simply about supply, but is a type of finance where tailored support reflecting vulnerable situations and post-management determine outcomes. Since the reasons for vulnerability and related issues differ by life stage-such as for youth, the self-employed, the elderly, those with career interruptions, and debt-vulnerable households-case management that diagnoses, connects, and accompanies individuals to the end, rather than standardized products, is the key to success. At this point, collaboration with private partners is essential for financial holding companies to achieve 'reach' and 'settlement' in inclusive finance. Private partners with financial expertise, based on field experience and sustainability, can closely listen to the often-overlooked circumstances and contexts of each individual, break down procedural barriers, and provide support so that no one gives up midway. The attention to detail-ensuring 'completion' through sincerity and ongoing support-is what enables inclusive finance to move beyond assistance to true recovery and renewal.

The voluntary implementation of inclusive finance by financial holding companies starts by shifting the performance evaluation from 'supply' to outcomes in conversion, settlement, recovery, and safety net. When the organization shares the conviction that these outcomes are not only ESG (S) achievements but also management results that reduce risk costs such as defaults, complaints, and collection expenses, sustainable implementation becomes possible. Ultimately, the final challenge lies in the on-site design and collaborative details that ensure an individual's recovery is not interrupted but fully realized to the end.

Jung Woonyeong, Chairperson of the Finance and Happiness Network