Lee Eok-won: “Miso Finance funding to reach 600 billion won by 2028”

[Financial News] An additional 800 billion won in funding will be injected into the Miso Finance program. With additional funding secured for the program, which provides low-interest loans to low-income people with poor credit, access to loans for financially vulnerable groups is expected to become slightly easier.
The Financial Services Commission said on the 30th that it had signed an agreement to contribute a total of 800 billion won to Miso Finance with seven companies and financial institutions and the Korea Inclusive Finance Agency at the agency in Jung-gu, Seoul. Under the agreement, Samsung will contribute 200 billion won. NH NongHyup Financial Group, Shinhan Financial Group, Woori Bank, Kookmin Bank, Hana Bank and Industrial Bank of Korea (IBK) each agreed to contribute 100 billion won, for a total of 800 billion won, to Miso Finance. The institutions plan to make their contributions in installments over a period of up to five years.
Shinhan Financial Group had already contributed 40 billion won in June. NH NongHyup Financial Group plans to contribute 53.4 billion won this year; Samsung and Kookmin Bank, 40 billion won each; and Hana Bank and IBK, 20 billion won each. Woori Bank will begin contributing next year. NH NongHyup Financial Group plans to establish the NH Miso Finance Foundation (tentative name) before the end of this year and open eight branches nationwide in stages. It plans to begin providing Miso Finance in the first quarter of next year, focusing on financially vulnerable people in rural areas.
Each Miso Finance foundation will also expand its specialized products. The Shinhan Miso Finance Foundation runs a program that provides asset-building support funds to young borrowers who make their loan repayments diligently. The KB Miso Finance Foundation plans to launch the “KB Youth Rider Hope Loan” this November to help young delivery-platform workers buy two-wheeled vehicles. It will offer loans of up to 5 million won at annual interest rates of 2.5% to 4.5%.
The Financial Services Commission plans to gradually increase Miso Finance lending from 400 billion won this year to 500 billion won next year and 600 billion won in 2028. It also plans to increase the number of Miso Finance branches from 168 as of September to around 180 next year.
Chairman Lee Eok-won said, “To further solidify Miso Finance’s identity as grassroots finance, it is essential to have not only funding but also a more attentive delivery system and an important role for people on the ground.”
Korea Inclusive Finance Agency President Kim Eun-kyung said, “We will actively support efforts to ease funding difficulties for young people, small-scale self-employed business owners and financially vulnerable groups through Miso Finance.”
[email protected] Park Mun-su Reporter