KB Kookmin Bank to cover half the interest for 10,000 borrowers who diligently repay loans from private lenders

[Financial News] KB Kookmin Bank will ease the interest burden on around 10,000 financially vulnerable borrowers who have been diligently repaying loans from private lenders. It plans to allocate 10 billion won to cover half the interest paid over one year, up to 1 million won per person.
According to financial industry sources on the 4th, KB Kookmin Bank will launch the “Credit Build Up Interest Support Program.”
Eligible customers are those currently borrowing from lenders participating in the program among the “Outstanding Lenders for Low-Income Finance” selected by the Financial Supervisory Service. They must have made loan repayments without delinquency for at least six months and meet detailed requirements, including income criteria. Those selected can receive support covering 50% of the interest paid on time over one year, up to 1 million won. They must also complete online financial education provided by the Financial Supervisory Service and the KB Financial Group Public Interest Foundation.
KB Kookmin Bank will donate 10 billion won to Social Solidarity Bank, which will operate the program. In cooperation with participating lenders, the bank will handle everything from selecting eligible recipients and verifying their eligibility to distributing the support payments. KB Kookmin Bank expects the program to ease the interest burden for around 10,000 people with loans totaling approximately 100 billion won.
The support payments will go directly to customers, not to the lenders. Alongside easing their interest burden, KB Kookmin Bank plans to help them develop sound financial habits. The aim is to help them re-enter the formal financial sector through “credit build-up”—building a record of regular financial transactions and gradually improving their credit.
A KB Kookmin Bank official said, “We hope this will break the vicious cycle in which people have to borrow emergency funds again when repayment obligations and living expenses pile up, help prevent the risk of exposure to illegal private lending, and serve as a stepping stone back to stable financial lives by easing their interest burden. We will continue to expand our inclusive finance support across various areas.”
[email protected] Seo Ji-yoon Reporter