The financial authorities convened in Jeonju, North Jeolla Province, to discuss measures for expanding region-centered inclusive finance. The aim is to enhance financial accessibility for local residents, small businesses, and medium-sized enterprises, thereby supporting the recovery of the local economy.
On July 9, the Financial Services Commission held the '6th Meeting on Transformative Inclusive Finance and Local Finance' at the North Jeolla Provincial Office of Small and Medium Enterprises and Startups. Attendees included Lee Won-taek, Governor of North Jeolla Province, Park In-hwan, head of the Korea Post, presidents of local banks from Jeonbuk, Gwangju, and Busan, as well as representatives from Kakao Bank, NH Financial Group, the Financial Supervisory Service, the Korea Banks Association, and the insurance industry, along with local small business and medium enterprise organizations.
The meeting was organized to review policy tasks aimed at improving local financial accessibility and revitalizing local finance, while also listening to the financial challenges faced by the community. The chairman emphasized, 'Balanced regional development is not just a local issue; it is a national task that influences the sustainable growth of South Korea.' He added, 'Local finance is a key foundation that protects the daily lives of small business owners and supports the growth of local enterprises.'
The Financial Services Commission plans to implement lifestyle-oriented financial policies that residents and small businesses can easily access. Starting July 20, a pilot project for banking agency services will begin at 20 designated post offices nationwide. Residents who find it difficult to visit bank branches will be able to consult and apply for personal loans from Kookmin, Shinhan, Woori, and Hana Banks at their nearest post office, compare the results of bank assessments, and finalize loan agreements.
Joint loans will also be promoted, allowing local banks and internet-only banks to provide loans to small businesses and individual entrepreneurs together. The Financial Services Commission plans to review the designation of innovative financial services this month and support the development of systems to launch these products by 2027. This initiative aims to reduce the interest burden on local small businesses and entrepreneurs by combining the local banks' assessment capabilities with the low funding costs and non-face-to-face channels of internet banks.
Additionally, mutual insurance for vulnerable local groups will be expanded. The insurance sector is utilizing a 30 billion won mutual fund to provide free customized insurance to vulnerable groups within local governments. North Jeolla Province signed a mutual insurance business agreement with the insurance sector last September, becoming the first in the nation to do so, and next month, comprehensive insurance for small business owners, including accident and fire insurance, will be provided free of charge.
In the future, the Financial Services Commission plans to offer accident insurance and healthcare services to vulnerable elderly individuals living alone, as well as expand insurance coverage to address new risks such as climate disasters and voice phishing. The revamped mutual insurance products are targeted for release in the first quarter of 2027.
* This article has been translated by AI.
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