South Korea's Financial Services Commission (FSC) on July 9 announced a pilot banking agency service that will allow residents to compare and apply for loans from four major banks at post offices starting July 20. FSC Chairman Lee Eok-won unveiled the initiative at the 6th Inclusive Finance Grand Transformation Meeting in Jeonju, Jeonbuk Province, as part of efforts to improve financial accessibility in regions with limited bank branch access. The pilot program launches alongside expanded joint lending between regional and internet banks and insurance industry commitments to provide free coverage for vulnerable groups.
Post Offices to Offer Loan Comparison Service from Four Major Banks
The FSC will operate the banking agency pilot service at 20 general post offices across six regions: Gyeongbuk, Gyeongnam, Chungcheong, Gangwon, Jeonbuk, and Jeonnam. Residents in areas with limited access to bank branches can visit nearby post offices to apply for consultations on eight loan products from KB Kookmin Bank, Shinhan Bank, Woori Bank, and Hana Bank. The products include personal credit loans and the New Hope Holssi policy loan for low-income borrowers. Customers can compare審査 results from each bank and select their preferred product. The pilot phase focuses on personal credit loans, with the FSC planning to expand product offerings based on operational results. Banks agreed to provide an average 0.2 percentage point preferential interest rate to customers using the banking agency service.
Regional Banks and Internet Banks Launch Joint Lending for SMEs
The FSC is advancing a joint lending program between regional banks and internet banks to serve local small and medium-sized enterprises and individual business owners. Under the structure, internet banks receive loan applications through their mobile applications, then both the internet bank and regional bank jointly review applications and supply funds. Once approved, both institutions share the loan amount at a predetermined ratio. The FSC will review the program for innovative financial service designation this month, then support technical system development with a target service launch next year.
Insurance Industry Expands Free Coverage for Small Business Owners
The insurance industry will provide free accident and fire insurance to small business owners in the Jeonbuk region starting next month. The FSC plans to expand coverage to include accident insurance combined with healthcare services for elderly individuals living alone, dementia liability insurance, children's insurance, climate insurance, and voice phishing damage compensation insurance. The commission is also pursuing a plan to link mutual benefit insurance support with policy-based microfinance users. The FSC will sign business agreements with local governments and public institutions starting in the third quarter of this year, with revised mutual benefit insurance products scheduled for launch in the first quarter of next year.
NH Financial Group Commits 15.3 Trillion Won to Inclusive Finance
NH Agricultural Cooperative Financial Group announced plans to supply 15.3 trillion won in inclusive finance over the next five years. Of this total, 6.8 trillion won will be allocated to microfinance and support for vulnerable groups. The group plans to establish the NH Smile Microfinance Foundation with 100 billion won in the fourth quarter of this year to strengthen support for vulnerable populations in local regions. FSC Chairman Lee stated that regional financial competitiveness stems from understanding and proximity to local communities, adding that the commission will support financial supply reflecting regional characteristics to drive local investment and growth. The FSC will also review industry proposals including expanded banking agency operations, eased loan-to-deposit ratio regulations for policy microfinance, and improved risk weighting for small business loan refinancing in consultation with related agencies.
FAQ
What loan products can residents apply for at post offices starting July 20?
Residents can apply for eight loan products at 20 general post offices across six regions, including personal credit loans and the New Hope Holssi policy loan from KB Kookmin Bank, Shinhan Bank, Woori Bank, and Hana Bank. Banks provide an average 0.2 percentage point preferential interest rate for customers using the post office banking agency service.
How does the joint lending program between regional banks and internet banks work?
Internet banks receive loan applications through mobile applications, then both the internet bank and regional bank jointly review applications and supply funds. Once approved, both institutions share the loan amount at a predetermined ratio. The FSC will review the program for innovative financial service designation this month, with a target service launch next year.
What insurance coverage will the insurance industry provide to vulnerable groups?
The insurance industry will provide free accident and fire insurance to small business owners in Jeonbuk starting next month. Future coverage will expand to include accident insurance with healthcare services for elderly individuals living alone, dementia liability insurance, children's insurance, climate insurance, and voice phishing damage compensation insurance, with revised products launching in the first quarter of next year.
