Strengthening Tailored Financial Support for Low-Income and Vulnerable Groups and Small Business Owners: Jeonnam-Gwangju Inclusive Finance Integrated Support Center Opens

[Financial News, Jeonnam-Gwangju = Hwang Tae-jong, Reporter] The Jeonnam-Gwangju Inclusive Finance Integrated Support Center, which provides tailored financial services for low-income residents, vulnerable groups and small business owners in the Jeonnam-Gwangju region, has opened and begun full-scale operations.
 The Jeonnam-Gwangju Inclusive Finance Integrated Support Center is the second community-based public-private inclusive finance model established nationwide, following the Busan Integrated Support Center, which opened in July. The center was created through cooperation among the central and local governments, related organizations and private financial institutions so that financial, employment and welfare services can be connected in one location.
According to Gwangju Bank on the 30th, the Jeonnam-Gwangju Inclusive Finance Integrated Support Center, located in Gwangsan District of Jeonnam-Gwangju Special Metropolitan City, held its opening ceremony that day and began expanding financial support for low-income residents, vulnerable groups and small business owners. Lee Eok-won, Chairman of the Financial Services Commission; Hwang Gi-yeon, Administrative Deputy Mayor of Jeonnam-Gwangju Special Metropolitan City; Kim Eun-kyung, President of the Korea Inclusive Finance Agency and Chairman of the Credit Counseling and Recovery Service; and Jeong Il-seon, President of Gwangju Bank, attended the ceremony along with other officials to celebrate the center's launch.
 Jeong Il-seon, President of Gwangju Bank, said, "As the region's leading financial institution, we will work to ensure that 'people-centered finance' takes root in Jeonnam-Gwangju, a symbol of integration. Through the Jeonnam-Gwangju Inclusive Finance Integrated Support Center, we will provide finance that is closest to local residents when they need it and becomes a dependable source of strength when they are starting over."
 The Jeonnam-Gwangju Inclusive Finance Integrated Support Center houses the Korea Inclusive Finance Agency, the Credit Counseling and Recovery Service, Gwangju Bank and Miso Finance entities. Together, they provide policy-based inclusive finance, debt adjustment, and employment and welfare counseling on a one-stop basis.
 Gwangju Bank will handle financial counseling and help low-income residents, vulnerable groups and small business owners facing complex difficulties access the services they need more conveniently.
 To coincide with the center's opening, the institutions also introduced the region-specific product Jeonnam-Gwangju Hope Ladder Savings and Loan. Developed in cooperation with the Korea Inclusive Finance Agency and other related organizations, the product is intended to help customers using policy-based inclusive finance establish stable access to the formal financial system while supporting the independence and recovery of financially vulnerable groups.
 The Jeonnam-Gwangju Hope Ladder Loan offers individual business owners with annual reported income of no more than 50 million won and business locations in Jeonnam-Gwangju Special Metropolitan City an additional preferential interest rate of 0.5 percentage points. Customers who subscribe to the product will also receive free consulting services for small business owners.
 The Jeonnam-Gwangju Inclusive Finance Integrated Support Center will also launch a mobile integrated support program, visiting communities across the region with related organizations for residents who have difficulty visiting the center. Through this initiative, it plans to improve access so residents can more easily use a range of services, including policy-based inclusive finance, employment and welfare support.
 Meanwhile, Gwangju Bank supplied approximately 4 trillion won in new loans from 2024 through August this year to help local small and medium-sized enterprises and small business owners maintain operational stability. It has also provided a total of 1,182 free consultations in four areas: marketing, business diagnostics, tax and legal matters, and store operations. In addition, the bank contributes 8.2 billion won annually to local guarantee institutions, including the Gwangju-Jeonnam Credit Guarantee Foundation, supporting special guarantee programs and rehabilitation-support guarantees.
 Going forward, Gwangju Bank plans to operate special loan funds for small business owners with an annual limit of 500 billion won. It will reduce their financial cost burden through special interest-rate reductions and extensions of the maturity of guaranteed loans. The bank also plans to increase its special contributions to guarantee institutions to provide continued support for the stable operations and recovery of small business owners.

[email protected] Hwang Tae-jong Reporter