South Korea's Financial Services Commission formalizes KRW 800 billion Miso microfinance funding package

South Korea's Financial Services Commission (FSC) has set out donation arrangements totaling KRW 800 billion to expand Miso microfinance, with contributions paid to participating foundations in installments over up to five years. Samsung accounts for KRW 200 billion, while six financial groups and banks have committed KRW 100 billion each. The total includes Shinhan Financial Group's contribution agreed in March, of which KRW 40 billion was paid in June. The funding supports plans to increase annual Miso lending to KRW 400 billion in 2026, KRW 500 billion in 2027 and KRW 600 billion in 2028, within the FSC's broader financial inclusion agenda. NH NongHyup Financial Group also signed an agreement to participate in Miso microfinance. Its planned foundation will be established by the end of 2026, progressively open eight branches and begin lending mainly to financially vulnerable rural borrowers in the first quarter of 2027. Following March reforms allowing foundations to develop specialized products, KB's foundation plans to launch loans in November 2026 for young delivery platform workers to purchase motorcycles, offering up to KRW 5 million at annual rates of approximately 2.5% to 4.5%, before applicable discounts. NH plans farming startup and operating loans in 2027, while Shinhan already provides asset-building grants to eligible young borrowers who maintain timely repayments. Participating institutions reported that rising volumes of smaller loans were increasing counseling, assessment and staff workloads. The Korea Inclusive Finance Agency proposed expanding the delivery network, improving counseling and loan agreement processes, and strengthening staff training and technology support for specialized products. The FSC will establish a council involving government, the agency and Miso foundations, chaired by its vice chairman, to review operational issues regularly and share practical experience.