FSC get solution and trying to activate the financial support

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Hi friends! How’s it going? Feel exhausted and pooped after the HOT summer? Those cool Olympic matches are all over now, and you are looking for something cool, right? So, I’ve come up with a cool news about microcredit!

Nowadays, we hear lots of news about the household debt issue in Korea. The issue is being sensitive, and accordingly treated with a due consideration. The significance of the issue is highly related to Korea’s national credit rating. Then what would be a good social safety net measure to help out those low-income households having suffered from an illegal debt collection practices?

FSC has policy measures responding to low-income households’ economic difficulties. The Chairman, Kim Seok-Dong, said that the government should continue to seek policy measures to take care of low-income households. According to the FSC, the solution to ease low-income households’ financial burdens is expanding ‘microcredit’ which is being actively supported.

Small merchants, who had been financially excluded by microcredit, experienced a hard time to pay for their debt with a high interest rate. For these people, the FSC expanded the size of financial assistance as well as eased the credit limits for them. For the policies to be more concrete and better promoted, they lowered the interest rates for Sunshine loans.

There are some other positive signs for the microcredit. That is, the financial assistance through Newhope loans and Smile microcredit loans even exceeded the planned goal of the year!

Covered by Loans 

Current size

expansion

Operational Cost of Business

KRW 100 billion

KRW 200 billion

Facility Improvement

KRW 100 billion

KRW 200 billion

Start-up Business

KRW 500 billion

KRW 700 billion

With the increasing demand for funds by individual entrepreneurs, the size of Smile microcredit loans has been increased by KRW 0.5 trillion. Many traditional market places are losing their competitiveness, not being able to compete against countless number of the giant supermarket chains dominating the market. Taking this issue account, microcredit is designed to grant more loans with affordable interest rates to the small merchants.

Right, the overall size of microcredit has been increasing, which means that more people can be beneficiary of the system. Now, why don’t you help your friends suffering from financial problem? Just let them know this great opportunities for financial support!

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