Banks Executed 527.8 Billion KRW in Voluntary Support for Livelihood Finance Last Year

Over the past year, banks have voluntarily provided 527.8 billion KRW in financial support for vulnerable groups. This amounts to 88% of the target disbursement amount. The refund amount for interest paid by individual business owners is 1.4876 trillion KRW.

According to the Korea Federation of Banks on the 31st, the amount disbursed under the "voluntary program" to support vulnerable groups tailored to each bank's situation as part of the livelihood financial support measures until the end of last year was 527.8 billion KRW. Of the total disbursement, about 64%, or 197 billion KRW, excluding the contribution to the Korea Inclusive Finance Agency, was allocated to cash-type support. This support includes expense support such as electricity and communication fees, cost support such as guarantee fees and digital device introduction costs, and interest cashback.

First, the banking sector disbursed 230.4 billion KRW last year to support contributions to the Korea Inclusive Finance Agency and low-interest refinancing programs. Contributions amounted to 221.4 billion KRW and were completed by the third quarter of last year. Additionally, 9 billion KRW was used to support the low-interest refinancing program expanded by the Financial Services Commission and the Korea Credit Guarantee Fund targeting intervention businesses.

Eunhaeng Yeonhap Hoegwan, Jung-gu, Seoul. Photo by Jinhyung Kang

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1.704 trillion KRW was also provided to small business owners and small enterprises. Various cash-type support methods were adopted to enhance the experience of small business owners, including 31.2 billion KRW allocated for expense support such as electricity and communication fees. Special guarantee support and loan principal and interest reduction were also disbursed at 49 billion KRW and 28.8 billion KRW, respectively.

1.27 trillion KRW was used to support youth and financially vulnerable groups. For the youth, 16.5 billion KRW was provided for scholarships and 10 billion KRW for startup funds.

Meanwhile, by the end of January this year, banks disbursed 1.4876 trillion KRW, which is 99% of the total expected interest refund amount of 1.5035 trillion KRW for interest paid by individual business owners. The refund performance for interest on individual business loans paid in the fourth quarter of last year was 9.1 billion KRW, which was paid by the end of this month. Although this refund program will end with this payment, payments to borrowers who have not received refunds due to the absence of receiving accounts will continue until April this year.

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