Financial authorities to introduce inclusive finance performance rating system

Financial authorities plan to introduce a comprehensive inclusive finance evaluation system to measure the performance of financial companies in serving underserved borrowers. The move comes amid persistent criticism that financial firms have been reluctant to extend credit to low- and mid-credit borrowers, citing cost burdens and soundness management concerns. The new framework aims to encourage voluntary participation in inclusive finance through a structured assessment regime.

The Financial Services Commission said Sunday it held a kickoff meeting for the policy subcommittee under the Inclusive Finance Strategy Task Force at the Government Complex Seoul in Gwanghwamun, where officials discussed the direction for introducing the comprehensive evaluation system and the subcommittee's operating plan.

The commission is currently reviewing the framework's overall structure, proposed indicators and how evaluation results will be used. Once introduced, the system is expected to provide a quantitative benchmark for comparing and managing the inclusive finance performance of financial companies.

The policy subcommittee, which held its inaugural meeting Sunday, will be divided into four working groups starting in July, organized by task type: funding supply, rehabilitation support, delinquent bond management and illegal private lending response.

The meeting was attended by Im Su-gang, the private-sector subcommittee chair, along with private-sector committee members and representatives from the Financial Supervisory Service, the Korea Inclusive Finance Agency, the Credit Counseling and Recovery Service, the Korea Credit Information Services and the Korea Asset Management Corp. (Kamco).

The funding supply working group aims to design a "credit build-up" pathway — centered on the inclusive finance evaluation system and the introduction of a people's financial stability fund — to make it easier for vulnerable groups to access the formal financial sector.

The rehabilitation support working group will work to improve the Credit Counseling and Recovery Service's institutional framework and strengthen the effectiveness of integrated support linkages to help debtors return to economic activity. The delinquent bond management working group will be responsible for monitoring and regulating how public institutions and financial companies handle delinquent bonds.

The illegal private lending response working group plans to build a system covering everything from preemptive measures — including regulation of illegal advertising — to a one-stop counseling and relief service for victims of illegal private lending.

The Financial Services Commission said the policy subcommittee will finalize proposals at monthly plenary meetings of the task force once specific plans are ready, adding that the finalized measures will be announced through a future "grand transformation" conference.