South Korea's Financial Services Commission announced that the government has approved amendments to the Enforcement Decree of the Microfinance Support Act that increase annual microfinance contributions paid by financial companies to the Korea Inclusive Finance Agency (KINFA) and create a legal basis for KINFA to provide credit guarantee support for users of the Credit Counseling and Recovery Service (CCRS) microloan programme. The revised contribution framework raises the common microfinance contribution rate linked to household loan balances from 0.06% to 0.1% for banks and from 0.03% to 0.045% for nonbanks including insurance, mutual finance, specialised credit finance and savings banks. This is expected to increase annual contributions by about KRW197.3 billion, comprising KRW134.5 billion from banks and KRW62.8 billion from nonbanks. Separately, KINFA will be able to provide credit guarantees for CCRS microloans, which have been offered at 3% to 4% annual interest and previously relied on guarantees from Seoul Guarantee Insurance, enabling CCRS to plan an expansion of annual microloan supply from KRW120 billion to KRW420 billion. The revised Enforcement Decree will take effect on the day of promulgation.
South Korea Financial Services Commission 2026-04-06
South Korea Financial Services Commission secures cabinet approval to raise KINFA microfinance contributions and authorise credit guarantees for CCRS microloans
The South Korea Financial Services Commission approved amendments to the Enforcement Decree of the Microfinance Support Act, increasing annual microfinance contributions by financial companies to the Korea Inclusive Finance Agency and establishing a legal basis for the agency to provide credit guarantees for Credit Counseling and Recovery Service (CCRS) microloans. The contribution rate on household loan balances will rise to 0.1% for banks and 0.045% for nonbanks, lifting annual contributions by an estimated KRW197.3 billion, while the new guarantee framework is expected to expand CCRS microloan supply from KRW120 billion to KRW420 billion.