NongHyup Financial Group (NH Financial Group) signs agreement to join microfinance program, pledges 100 billion won

[Financial News] NH Financial Group Inc. will contribute 100 billion won to take part in the microfinance program in earnest. It plans to complete the establishment of the Microfinance Foundation as early as this month and expand support for financially vulnerable groups, focusing on local communities and rural areas.
According to financial-sector sources on the 1st, NH Financial Group signed an agreement with the Korea Inclusive Finance Agency on Oct. 30 to newly join the microfinance program. The agreement ceremony, hosted by the Korea Inclusive Finance Agency, was attended by the chairman of the Financial Services Commission, the agency’s president, and representatives of existing Microfinance Foundations and their parent companies and banks, among others. A joint agreement was also held with companies and banks that had agreed to make additional contributions to this year’s microfinance donations.
Since announcing its plan to join the microfinance program last July, NH Financial Group has pursued the necessary procedures with the aim of establishing the foundation by the fourth quarter of this year.
The program will have a total of 100 billion won in funding, contributed jointly by the group’s affiliates. Nonghyup Bank will provide 50 billion won, half of the total, as well as office space for the foundation, and will oversee the practical work involved in its establishment. NH Investment & Securities has committed to contribute 40 billion won, an unusual move for a securities firm. NH Capital Co., Ltd. will contribute 3.4 billion won, while NH NongHyup Life Insurance and NH NongHyup Property & Casualty Insurance will each donate 3.3 billion won.
The foundation is expected to be established as early as November. NH Financial Group held an inaugural meeting on the 27th of last month and is proceeding with the remaining incorporation steps, including obtaining approval from the Financial Services Commission. After a review by the Korea Inclusive Finance Agency, the group plans to complete the selection of implementing organizations within the year and pay in the donations. Once the organizations have been selected, the funds will be allocated and preparations for launching the program will follow.
NH Financial Group plans to focus on local communities and rural areas in operating the foundation as well. It is considering specific locations for regional branches, with the goal of having all 8 branches fully operational in 2027, the program’s first year.
The group is also developing specialized financial products to help people returning to farming and young farmers settle in securely. It is considering using microfinance to provide start-up and operating funds for farming businesses, linking the program with NACF’s agricultural support infrastructure, and offering repayment schedules aligned with harvest periods. The aim is to build a comprehensive support system spanning everything from starting a business to securing sales channels.
NH Financial Group Chairman Lee Chan-woo said, “By newly joining the microfinance program, we will be able to enhance the quality of locally rooted inclusive finance befitting NH Financial Group.” He added, “We plan to carefully prepare region-focused branches and specialized microfinance products for people returning to farming or rural areas, and step up efforts to launch the program.”

[email protected] Seo Ji-yoon Reporter