The Credit Union Central Association will provide $8.5 billion annually in inclusive finance targeted at low and middle-credit borrowers and low-income individuals. To alleviate the burden on local credit unions, a separate support fund of $38 million will also be established.
On August 28, the Credit Union Central Association announced its plans to expand inclusive finance during a vision declaration ceremony and policy discussion held at the National Assembly Library.
The association aims to launch specialized inclusive finance products under the vision of 'Finance Together, Inclusive Credit Unions.' The annual supply targets include $1.5 billion for low and middle-credit borrowers, $2.3 billion for low-income individuals, $750 million for online microloans, and $1.5 billion for online Sunshine Loans. Additionally, $1.5 billion will be allocated for social finance aimed at social solidarity economy enterprises and Sunshine Income Villages.
A $38 million 'Credit Union Inclusive Finance Support Fund' will also be established. This fund will be used to support principal and interest subsidies, thereby reducing the burden on individual credit unions and managing their financial health.
During the event, participants discussed measures to improve the system supporting the expansion of inclusive finance. They agreed on the need for a framework that encourages the provision of inclusive finance resources, rationalizes regulations related to policy finance, and promotes evaluations and incentives that expand regional and low-income finance.
Go Young-cheol, chairman of the Credit Union Central Association, stated, "We will proceed with concrete actions such as launching specialized products and establishing the inclusive finance support fund. We will work with the National Assembly and financial authorities to create a regulatory framework that harmonizes inclusive finance with soundness and sustainability."
With this vision declaration, the Credit Union Central Association plans to actively expand its inclusive finance initiatives and specify related system improvement tasks while continuing discussions with the National Assembly and financial authorities.
* This article has been translated by AI.
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