Sa-itdol Loan Surges 11-Fold in Q1 as Five Major Financial Groups Accelerate Inclusive Finance

The five major financial holding companies met more than 40% of their annual inclusive finance target in the first quarter. The result came as they expanded supply of policy-backed loans such as Saehuimangholssi Loan and stepped up support for vulnerable borrowers. If private mid-rate loans and social contribution activities that are not counted in inclusive finance performance are included, the total funding provided to vulnerable borrowers by the five major financial holding companies becomes even larger.
According to the financial sector on the 10th, the five major financial holding companies — KB Financial Group, Shinhan Financial Group, Hana Financial Group Inc., Woori Financial Group and NH NongHyup Financial Group — supplied a total of 5.6993 trillion won in inclusive finance in the first quarter of this year. That is close to half of their annual target of 13.2938 trillion won.
The five groups plan to provide a total of 70.4 trillion won in inclusive finance from this year through 2030. Their individual targets are 17 trillion won for KB Financial Group, 15 trillion won for Shinhan Financial Group, 16 trillion won for Hana Financial Group Inc., 7 trillion won for Woori Financial Group and 15.4 trillion won for NH NongHyup Financial Group. One financial holding company official said, "The target was calculated mainly around policy finance products whose supply volumes can be measured numerically, such as Saehuimangholssi Loan." The official added, "Social contribution activities and support programs for vulnerable groups, which are difficult to quantify, were not included."
In line with the government's push to strengthen inclusive finance, the five groups sharply increased lending through policy finance products. The five banks supplied 987.7 billion won in Saehuimangholssi Loan in the first quarter, up 22.3% from a year earlier and the highest quarterly amount on record. Saehuimangholssi Loan is an unsecured credit loan that provides up to 35 million won at an annual interest rate of no more than 10.5% to vulnerable borrowers, making it one of the flagship retail finance products. It is also understood to account for the largest share of the inclusive finance targets set by the financial holding companies.
Lending through Sa-itdol Loan, designed for borrowers with mid- to low-level credit scores, also rose sharply. The five banks supplied a total of 17.17 billion won in the first quarter, more than 11 times the amount in the same period last year. Shinhan Bank alone accounted for 10.7 billion won, or 62% of the total. One banking industry official said, "Since this year, financial holding companies have been reorganizing their funding strategy around two pillars: productive finance and inclusive finance." The official added, "The scale of policy finance supply is expected to expand further."
In addition, the five groups are carrying out a range of support measures to help financially vulnerable people achieve self-reliance. KB Financial Group is strengthening non-financial services as well as financial support for vulnerable groups. It has opened the KB Hope Finance Center to help them make a fresh start and is offering debt restructuring and credit counseling services. The center has recently expanded its operations beyond Seoul and Incheon Metropolitan City to major regions including Jeonju, North Jeolla Province, Daejeon, Daegu and Busan.
Earlier this year, Shinhan Financial Group wrote off 269.4 billion won in special claims for which the statute of limitations had been waived, in order to help low-income and vulnerable households recover. In March, it contributed an additional 100 billion won to the Microfinance Foundation, strengthening the retail finance infrastructure and building a sustainable framework for inclusive finance implementation.
From the beginning of the year, Hana Financial Group Inc. has been running an interest cashback program that returns 2% of the loan balance in cash to new Sunshine Loan customers. It is also expanding the Hana Happy Dream Bus, a mobile financial service that visits elderly vulnerable groups directly, to improve access to financial services.
Woori Financial Group has built a comprehensive support system that goes beyond policy products and links credit assessment improvements, expanded retail finance supply, lower interest burdens, and debt restructuring and recovery support. Woori Bank became the first in the industry to introduce a 7% annual interest cap on household credit loans, reducing interest burdens by a total of 620 million won for about 40,000 accounts in the first quarter. A Woori Bank official said, "We are focusing on restoring the financial ladder through customized support based on each customer's situation."
To close credit blind spots, NH Financial Group has sequentially introduced the "Inclusive Finance Triple Package" through Nonghyup Bank, NH Savings Bank and NH Capital Co., Ltd. Through this initiative, it plans to launch loan products for young people and offer preferential interest rates and other forms of inclusive finance support.
chord@fnnews.com Lee Hyun-jung Reporter