South Korea's Ministry of Economy and Finance outlined plans to launch a loan program in 2027 offering KRW 1 million at 4.5% interest for a term of 10 years to vulnerable borrowers who struggle to access mainstream finance. Deputy Prime Minister and Minister of Economy and Finance Lee Hyoung-il presented the plans during a visit to a financial support center in Seoul's Gwangjin district, where he met borrowers and counselors. The government is preparing additional measures to reduce borrowers' interest burdens, provide debt restructuring for debts that are difficult to repay and strengthen incentives for consistent repayment. It also plans to expand integrated financial, employment and welfare support so that people can access the assistance they need through a single visit. Industrial Bank of Korea plans to contribute up to an additional KRW 100 billion to microfinance. This brings total announced microfinance contributions from the bank, the five major financial holding groups, Samsung and other contributors to KRW 800 billion.
South Korea's Ministry of Economy and Finance plans 2027 launch of KRW 1 million loans at 4.5% for vulnerable borrowers
South Korea's Ministry of Economy and Finance plans to introduce KRW 1 million loans in 2027 at 4.5% interest, with terms of 10 years, for vulnerable borrowers facing difficulty accessing mainstream finance. Additional measures under preparation cover debt restructuring and repayment incentives, alongside expanded access to combined financial, employment and welfare assistance. Industrial Bank of Korea plans up to KRW 100 billion in additional microfinance contributions, bringing total announced contributions across participating institutions and companies to KRW 800 billion.