KB Kookmin Bank is set to alleviate the interest burden for financially vulnerable borrowers using lending companies, helping them return to formal financial systems.
On November 4, KB Kookmin Bank announced the launch of a 'Credit Build-Up Interest Support Program' with a total investment of 10 billion won. The bank will donate this amount to the Social Solidarity Bank to fund the program.
The program targets customers using loans from participating lending companies selected by the Financial Supervisory Service (FSS). To qualify, borrowers must have repaid their loans without delay for at least six months and meet specific income and other criteria. Those selected will receive support covering 50% of the interest paid for one year, up to a maximum of 1 million won per person. Additionally, completion of online financial education provided by the FSS and the KB Financial Public Interest Foundation is mandatory.
Considering the average loan interest rates of participating lending companies, KB Kookmin Bank estimates that around 10,000 individuals will benefit from this initiative. The total loan amount eligible for support is projected to reach approximately 100 billion won.
A representative from KB Kookmin Bank stated, "We hope to break the vicious cycle of having to borrow again due to overlapping repayment and living expenses, which exposes borrowers to the risks of illegal money lending. This program aims to ease their interest burden and serve as a stepping stone for a stable financial life. We will continue to expand inclusive financial support across various sectors."
* This article has been translated by AI.
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