Bank loans at rural post offices to launch Monday as regulators finalize rollout

Starting Monday, customers in rural and fishing communities will be able to apply for personal credit loans from the four major banks — KB Kookmin, Shinhan, Woori and Hana — as well as Saeheuimang Holssi, a government-backed loan product for low-income borrowers, directly at post office counters. The FSC said it plans to expand the range of products and operating regions covered under the bank agency pilot program next year.

The Financial Services Commission announced Monday that Korea Post, the Korea Financial Telecommunications and Clearings Institute, and the four banks signed a memorandum of understanding at the Korea Federation of Banks building in Jung-gu, Seoul, presided over by Kim Jin-hong, director general of the FSC's financial industry bureau.

The parties signed the agreement ahead of the pilot launch to flesh out operational details and strengthen the cooperative framework among participating institutions.

FSC Chairman Lee Eok-won had earlier shared the pilot program's operational plan at the sixth Inclusive Financial Transformation Conference and Regional Finance Forum, held Thursday at the North Jeolla Province Small and Medium Venture Business Agency. Each bank plans to offer preferential interest rates averaging 0.2 percentage points below standard rates to customers who take out loans through the bank agency service, in keeping with the program's inclusive finance goals.

The FSC said it will work closely with relevant agencies to ensure the pilot gets off to a smooth start. To that end, dedicated bank agency staff have been designated at each participating post office branch, and group training sessions were conducted in May and June in coordination with the four banks. A hotline has also been set up to connect pilot post offices directly with nearby bank branches.

During the first one to two weeks after launch, bank staff will be deployed on-site at each post office to guide customers through the entire process — from loan consultation and application to signing the loan agreement.

Customers who apply for a loan through a post office can expect final disbursement in as little as two days. The FSC plans to complete document digitization and build a large-scale file transfer system by the end of the year to shorten the time from application to disbursement.

Next year, the FSC plans to consult with relevant agencies on expanding the bank agency service to additional regions and broadening the product lineup beyond personal credit loans to include loans for sole proprietors and other products.

"As the saying goes, 'No finance means no opportunity' — financial services are an essential part of people's everyday lives," Kim said. "This can be an excellent alternative for residents in areas without a nearby bank branch, meaningfully improving their access to financial services."