KB Kookmin Bank to Ease Financial Burden for 10,000 Borrowers Making On-Time Payments to Private Lenders

KRW 10 billion program to cover 50% of interest on private loans
Up to KRW 1 million per person for one year
From easing interest burdens to financial recovery

KB Kookmin Bank said on November 4 that it will launch the “Credit Build Up Interest Support Program,” worth a total of KRW 10 billion, to ease the interest burden on financially vulnerable borrowers using private lenders and help them gradually rebuild their credit.

The program was developed to help borrowers with low credit ratings who have difficulty accessing first- and second-tier financial institutions re-enter the formal financial system. To fund the interest support program, KB Kookmin Bank will donate KRW 10 billion to Hamkke Mandeuneun Sesang (The Social Solidarity Bank).

The program is open to customers who have loans from participating lenders selected by the Financial Supervisory Service as “outstanding private lenders for low-income borrowers.” Applicants must have made repayments for at least six months without falling behind and meet detailed requirements, including those related to income. Those selected can receive support for 50% of the interest paid on time over one year, up to KRW 1 million per person. They must also complete online financial education provided by the Financial Supervisory Service and the KB Financial Group Public Interest Foundation.

The program is designed to ensure that the benefits go directly to customers, rather than to the private lenders. It will not only reduce their financial costs but also help them understand their credit and financial status and develop sound financial habits. The bank plans to help participants steadily build a record of regular financial transactions and gradually improve their credit through “Credit Build Up.”

The Social Solidarity Bank will be responsible for operating the program. In cooperation with participating private lenders, it will handle the entire process, including selecting eligible applicants, verifying that they meet the requirements and disbursing support payments. Considering the program’s funding and the average interest rates charged by participating private lenders, KB Kookmin Bank expects about 10,000 people to benefit from reduced interest payments.

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