An Update on Smile Microcredit Bank


The Lee Myung-Bak government has launched the “Smile Microcredit Bank,” a state-led microcredit lending program designed to provide unsecured small loans to low-income earners, individual business people and people with under level-7 credit ratings.

A total of 2 trillion won (US$1.78 billion) will be funded over the next 10 years for those who lack access to traditional loans because of their low credit ratings.

* 14 branches funded by the corporate and banking sectors, 7 local branches

The Smile Microcredit Bank lends money at 4-5 percent interest rate, far lower than that of commercial banks, depending on the borrowers’ credit ratings.


[Lets look at a case]

The Microcredit Bank is expected to bring a smile to the working class people mired in economic hardships


For example, Ji, Il-Yeol is one of the lucky beneficiaries. The 47-year-old is running an unregistered shop for bedding products in Goyang, Gyeonggi Province, and applied for 5 million won to buy fabric. Woori Bank decided to lend the money to him. Ji, Il-Yeol was so glad to hear that he could get the money. Five million won sounds like a small amount, but for the people who need it is a huge amount.

-“I hope others can also benefit from the program.”- 




[Nation-wide network]


All parts of the Korea ! 200 ~ 300 ”Smile Finance” branch. In the new program not only government but also private bank and local government will help this program and make big network across the whole country. This will allow people to easily access the program and make budget supply more diverse.

[Financial consulting]

Moreover, the program will counsel people after they borrow the money on how to spend it effectively.



[volunteers & Retired Financiers]

The branches will be staffed by young volunteer workers who want to build a financial career and managed by ex-bankers in the financial industry.

As the Smile Microcredit project is still in its early stage, the government will closely monitor the operation and continue to complement the program to benefit more people in need.

For the individuals who cannot benefit from the Smile Microcredit loans due to credit delinquencies, excessive high-interest debts, the government will help them use alternative programs such as the credit recovery program or the loan transfer program.

It is hoped that many people will have a chance to stand on their feet through the help of the smile mircrocredit bank.


8 thoughts on “An Update on Smile Microcredit Bank

  1. Wonderful content! This can aid many people find out about this matter. Do you want to include video clips along with these? It could undoubtedly help out. Your explanation was spot on and owing to you; I probably will not describe all sorts of things to my pals. I could easily point them here.

    • Thank you for your comment. Miso Microcredit Bank is identified as one of the microfinance policy in Korea. If you want more information about this, see the videoclip of March 8th, ‘Progress report on Smile Micorcredit Bank’ in our blog. You can get update news upon this issue. I hope you enjoy that too. 🙂

    • Thanks for your comment Sophy, so far 27 Smile Microcredit Bank brancheds have been established throughout the nation. It will be more expanded in the future. If you see Weekly e-Briefing of March 8th, you can get more details upon this. 🙂

  2. Im glad I discovered this webpage, I couldnt discover any information on this matter prior to. Also manage a site and if you wish to ever interested in a little bit of visitor writing for me if possible feel free to let me know, im always look for people to check out my blog. Please stop by and leave a comment sometime!

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s