Industrial Bank of Korea (IBK) to contribute an additional 100 billion won to Microfinance Foundation; launches 4.9% “Good-Rate Loan”

[Financial News] Industrial Bank of Korea will contribute an additional 100 billion won to the Microfinance Foundation to help low-income people and borrowers with low credit scores get back on their feet. It will also launch the “Good-Rate Inclusive Loan,” offering a fixed 4.9% interest rate over 10 years to help financially vulnerable groups become self-reliant.
Jang Min-young, president of Industrial Bank of Korea, said on the 28th that the bank would pursue its “IBK Inclusive Finance Plan,” including a contribution of up to 100 billion won to the Microfinance Foundation. He made the announcement at the 7th Inclusive Finance Transformation Meeting, chaired by Financial Services Commission Chairman Lee Eok-won and held at the Korea Asset Management Corporation’s Yangjae Tower in Gangnam-gu, Seoul.
Jang announced that day the launch of a new “Good-Rate Inclusive Finance Loan” program worth 1 trillion won in total, designed to substantially reduce interest burdens for borrowers with mid-to-low credit scores. It offers loans of up to 20 million won at a single fixed rate of 4.9% for 10 years. Young borrowers will receive a 0.20-percentage-point rate reduction, bringing their rate to 4.7%.
The bank will also contribute up to an additional 100 billion won to the IBK Microfinance Foundation to expand funding for young customers and customers living in regional areas. It will also launch the “IBK Future Preparation Loan” to help financially vulnerable people, including those who have closed their businesses or lost their jobs, get back on their feet.
The bank is also expanding its existing inclusive finance support programs. It will provide a total of 8.5 trillion won through the “IBK Small Business Owners’ More Dream Package” for small business owners who repay their loans faithfully, an increase of 1 trillion won from the previous amount. The bank has also broadened eligibility for debt restructuring. It has introduced debt restructuring and loan maturity adjustment services for customers struggling to repay loans because of business closure, job loss, illness or other reasons. Last August, IBK established and began operating a Productive and Inclusive Finance Division and an IBK-style Productive and Inclusive Finance Task Force.
“We will build a financial ladder that closely connects support at each stage for vulnerable groups and expand the tangible results of inclusive finance,” Jang said. At the bank’s 65th-anniversary ceremony in July, he had set a goal of providing 30 trillion won in inclusive finance by 2030: 21.4 trillion won to reduce the financial burdens of underserved groups; 5.1 trillion won to support vulnerable borrowers in getting back on their feet; 300 billion won to expand social contributions; and 3.7 trillion won to provide financial services to ordinary people in partnership with group companies.
[email protected] Jo Eun-hyo Reporter