Eunkyung Kim's Experiment: Debuting the 'Inclusive Finance PB' to Identify Delinquency and Insolvency Risks Early

Proactively Detecting Delinquency Risks and Providing Tailored Support
Transforming from a Policy Finance Provider to a "Financial Family Doctor" for Ordinary Citizens

#A, a self-employed business owner in his 30s running a cafe in Bongseon-dong, Nam-gu, Gwangju, received a financial consultation text message from the Korea Inclusive Finance Agency (KIFA). Having previously received support from KIFA's inclusive finance policies, A was informed that the risk of delinquency among self-employed people in their 30s with monthly sales below 5 million won in the area was rising, and was encouraged to seek counseling. After applying for the consultation, A received a checkup on cash flow and debt status, and was guided to financial support and welfare-linked services tailored to his needs. This is the model for the "Inclusive Finance Private Banker (PB)" service that KIFA will introduce in August.

Eunkyung Kim, President of the Korea Inclusive Finance Agency

According to the financial industry on June 15, KIFA is preparing a "field-based K-Inclusive Finance" model that proactively identifies customers at risk of falling into financial vulnerability and provides customized support.

The core of the initiative is the Inclusive Finance PB service. Similar to the PBs (private bankers) at banks and securities firms who manage the assets of high-net-worth individuals, KIFA's PBs will comprehensively diagnose the debt, repayment capacity, and welfare needs of working-class people to provide individualized support measures. The service will be piloted in Gwangju, Jeonnam, and Jeju in August.

To this end, KIFA plans to integrate its own data on guarantees, loans, bonds, consultations, and customers to analyze regional financial vulnerability risks. Key data to be analyzed include the scale of guarantee support and accident status accumulated in the process of providing inclusive finance, subrogation rates, users’ income levels, and repayment histories. If KIFA detects an increase in guarantee accidents or a rise in subrogation rates in a specific region, business sector, or age group, it will interpret this as a signal of growing financial burden in that segment and take proactive measures in response.

A KIFA official explained, "Based on our data, we plan to analyze the unique characteristics and challenges of customers in each region and build a preventive, customized support system before financial risks materialize."

For example, if an upward trend in delinquency risk is observed among young people or newly self-employed business owners in a certain region, KIFA will send them a consultation notification text and, if necessary, offer on-site visits. In the long term, as discussions continue on integrating KIFA and the Credit Counseling & Recovery Service, the agency is also considering connecting their databases of inclusive finance usage and debt restructuring information for more effective support.

The approach to consultations will also change. Rather than simply informing customers about loan eligibility, KIFA will comprehensively assess their cash flow, debt structure, and repayment capacity, then guide them to relevant financial, welfare, and employment services. Consultation times will be increased from the current 30 minutes to over an hour, and dedicated consultation spaces will be created. In addition, KIFA plans to collaborate with local financial institutions and universities to develop region-specific financial products and financial education programs.

This project was fully launched after Eunkyung Kim, President of the Korea Inclusive Finance Agency, adopted an idea that emerged during meetings with front-line staff. After being briefed on the concept, President Kim instructed department heads nationwide to develop it into a new business model, demonstrating a strong commitment to introducing the Inclusive Finance PB service. The aim is to transform KIFA from a simple policy finance provider into a "financial primary care provider" that not only diagnoses financial risks in advance but also offers customized solutions for working-class people.

President Kim emphasized, "We need a personalized support model that can proactively assist financial consumers so they do not fall into financial vulnerability. We will build a financial safety net that provides not only economic recovery but also psychological stability, so that not a single citizen is left frustrated at the threshold of financial access."

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