Korea Inclusive Finance Agency to Revise Loan Regulations for Vulnerable Groups
The Korea Inclusive Finance Agency, in collaboration with the Financial Services Commission, is set to revise regulations to better support vulnerable groups with low incomes. Starting next month, the agency will implement an exception that removes the credit rating requirement for basic recipients, second-class people, and recipients of work incentives. This change aims to facilitate access to illegal private financial prevention loans, which are designed for low-credit individuals who struggle to access institutional finance. Previously, these loans required a credit rating below 20% and an annual income under 35 million won. The agency plans to revise these regulations in August and implement them by September. The financial resources for these loans, primarily sourced from donations by financial institutions, are currently at 89.8 billion won, with concerns about stability if they fall below 100 billion won. 
