Woori Financial Launches 'Youth Future Connection Loan' to Support Youth Self-Reliance

Additional 100 Billion Won Investment in Smile Microcredit Foundation
Annual Loan Supply to Reach 20 Billion Won by 2028
50% of Loans to Support Young People

Woori Financial Group is launching the "Youth Future Connection Loan" to help unemployed youth and young adults at the beginning of their careers become financially independent. In addition, the group will promote "New Hope Store," a social contribution initiative to support young entrepreneurs, and plans to expand the branches of Woori Smile Microfinance Foundation, particularly in regional areas.

On March 31, Woori Financial Group announced that it would contribute an additional 100 billion won to Woori Smile Microfinance Foundation to provide the Youth Future Connection Loan. Based on this new contribution, Woori Financial Group plans to expand the annual supply of Smile Microfinance loans to around 20 billion won by 2028 and raise the proportion allocated to youth support to 50%.

The Youth Future Connection Loan primarily targets young people preparing to enter society, such as high school graduates and unemployed individuals, who lack sufficient financial history and thus have difficulty accessing existing policy products. Eligible applicants include those in the bottom 20% of individual credit scores or from lower-income groups, who are also eligible to apply for the Earned Income Tax Credit, and are either unemployed and under the age of 34 or within one year of starting employment or a business. The interest rate is set at 4.5% per year, with a maximum loan amount of 5 million won. The loan is structured as an installment repayment of principal and interest, with a grace period of up to 6 years and a repayment period of up to 5 years.

In particular, the screening process focuses more on the intended use of funds and the applicant’s willingness to repay, rather than income or existing credit history. The scope of fund usage has been expanded to cover a wide range of social entry costs, such as obtaining certifications, startup capital, and settlement expenses at the start of employment, and financial counseling is required as a mandatory condition. This support goes beyond simple lending and helps establish a foundation for independence.

The branches of Woori Smile Microfinance Foundation will be expanded, primarily in regional areas. Some branches will be relocated to traditional markets and other areas densely populated with small business owners to improve accessibility. The foundation also plans to strengthen customized on-site consulting services by hiring additional staff with lending experience.

Furthermore, on-site consulting services for digitally vulnerable groups, such as the elderly, will be introduced. A new social contribution project, tentatively named "New Hope Store," will also be launched to support young entrepreneurs with unstable sales, such as food truck operators. The New Hope Store will focus on supporting young business owners who are operating food trucks and street stalls and are faithfully repaying their Woori Smile Microfinance loans, providing items such as signboards, promotional banners, living essentials, and utility bill support.

Separately from expanding supply through the foundation, Woori Financial Group also plans to implement programs to strengthen the self-reliance of financially vulnerable groups. To support Smile Microfinance users in entering the institutional financial system, the group will link with Woori Bank’s "NEW Stepping Stone Loan" (to be launched) and offer a 0.5 percentage point preferential interest rate. The group will also expand non-face-to-face channels for debt adjustment applications and introduce on-site consulting services for the elderly. The "New Hope Store" social contribution initiative will also be promoted to support young entrepreneurs with highly volatile sales, such as food truck operators.

A representative from Woori Financial Group stated, "We will faithfully execute our plan to expand inclusive finance and strengthen support for youth and regional areas in alignment with government policy," adding, "We are committed to helping financially vulnerable groups establish a practical foundation for self-reliance."

This content was produced with the assistance of AI translation services.