Jeju launches safety net for financially vulnerable residents, including 1% emergency loans and asset-building support

[Financial News, Jeju = Jung Yong-bok] A financial support program that will lend up to 1 million won per person at an annual interest rate of 1% to Jeju residents who have difficulty borrowing from banks because of low credit or income will begin in September. The Jeju-style financial safety net is designed to provide small loans so financially vulnerable people in urgent need of cash do not turn to high-interest lenders or illegal private lending, while also linking them to asset-building through savings.
According to Jeju Special Self-Governing Province on the 24th, the province signed a business agreement that day at Samda Hall in the provincial office with Jeju Bank, the Credit Union Federation of Korea and the Jeju Credit Guarantee Foundation to promote the Jeju Win-Win Stable Household Loan and the Jeju Win-Win Inclusive Savings Account.
The signing ceremony was attended by Wi Seong-gon, governor of Jeju Island, Jeju Bank President Lee Hee-soo, Credit Union Federation of Korea Managing Director Lee Mun-gyu, and Jeju Credit Guarantee Foundation Chairman Oh Gwang-seok.
The centerpiece is the Jeju Win-Win Stable Household Loan. It will lend up to 1 million won per person at an annual interest rate of 1% to financially vulnerable residents who have limited access to formal finance. The amount is small, but the policy is aimed at preventing borrowers from turning to high-interest loans when they need emergency funds for daily living expenses or medical bills.
Jeju Island will design the program, while the Jeju Credit Guarantee Foundation will handle financial education, counseling and budget management. The Credit Union Federation of Korea and local credit unions under agreement will be responsible for applications, screening, loan execution and repayment management.
The province will also run the Jeju Win-Win Inclusive Savings Account, which is designed to help borrowers build a foundation for self-reliance after receiving loans. The program supports financially vulnerable people, including those who have gone through debt adjustment or personal rehabilitation, so they can save over a set period and build assets. Jeju Island will handle applications and registrations, the Jeju Credit Guarantee Foundation will review eligibility and manage the budget, and Jeju Bank will screen income and credit and operate the savings product.

In the supplementary budget finalized last month, Jeju Island also decided to allocate 2.6 billion won, including the main budget, for the Win-Win Stable Household Loan, the Win-Win Inclusive Savings Account and interest support for users of policy-based microfinance programs. At the time, the Win-Win Stable Household Loan was designed as a 1 million won-per-person loan at an annual interest rate of 1%.
The success of the policy will depend on how quickly funds can actually reach the people who need them. The key is to absorb small, urgent borrowing needs into the formal financial system before they shift to illegal private lending, while making counseling and post-loan management work together so borrowers can move back into savings and asset-building.
Jeju Island plans to launch the two programs in September after completing detailed preparations. Specific eligibility requirements and application procedures will be announced in line with the rollout schedule.
Wi Seong-gon, governor of Jeju Island, said, "Finance is a social foundation that protects a person's life and helps them stand back up again," adding, "We will build a Jeju where no resident is left out of finance."
Jeju Bank President Lee Hee-soo said, "Through the Win-Win Inclusive Savings Account, we will help residents steadily prepare for the future through small savings."


[email protected] Jung Yong-bok Reporter