NH Nonghyup Financial Group is set to establish the NH Microfinance Foundation with a contribution of 100 billion won to support financially vulnerable groups and revitalize local economies. The foundation aims to expand inclusive finance centered on local communities by offering specialized products for farmers and young people returning to rural areas, in addition to existing startup and operational funding.
On July 21, Nonghyup Financial held the first meeting of a task force (TF) to establish the NH Microfinance Foundation, reviewing the establishment procedures and detailed plans. Microfinance is a system that provides low-interest loans for startup funds, operational funds, facility improvement funds, and living stability funds to low-credit, low-income individuals and small business owners.
To establish the foundation, major affiliates including NH Nonghyup Bank, NH Investment & Securities, NH Nonghyup Life, NH Nonghyup Property & Casualty Insurance, and NH Nonghyup Capital will jointly contribute a total of 100 billion won. The TF will be led by Hwang Jong-yeon, the Executive Vice President of Strategic Planning at Nonghyup Financial. The foundation is expected to be established within this year after consultations with the Financial Services Commission and the Korea Inclusive Finance Agency.
Nonghyup Financial is focusing on revitalizing local economies through microfinance. In addition to existing startup and operational funding and living stability funds, the company plans to introduce tailored microfinance products for farmers and young people returning to rural areas, leveraging its expertise.
Furthermore, to enhance financial accessibility in rural and regional areas where financial institutions are relatively scarce, the company plans to utilize its affiliate sales networks to facilitate consultations and funding support.
Lee Chan-woo, Chairman of Nonghyup Financial, stated, "Inclusive finance is not a choice for financial companies but an obligation. We will support the revitalization of local economies at the city and county level through specialized microfinance products and establish an effective inclusive finance model."
* This article has been translated by AI.
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