Samsung announced Thursday it will contribute 200 billion won ($134 million) to the Samsung Microfinance Foundation to expand inclusive finance. The move follows Samsung Electronics' pledge, made after a labor-management agreement in May, to invest 5 trillion won in social contributions over five years. The initiative is expected to benefit about 40,000 financially vulnerable individuals and small business owners.
Samsung Electronics will provide 150 billion won of the total, while Samsung Life, Samsung Fire, Samsung Card and Samsung Securities — the financial affiliates that operate the Samsung Microfinance Foundation — will jointly contribute the remaining 50 billion won.
Samsung Electronics committed to expanding its social contributions after reaching a bonus-related labor-management agreement in May, pledging to raise 5 trillion won over five years for investment in a cooperative business ecosystem and the development of future talent. At the time, the company said it would ensure that "Samsung's growth and achievements create a virtuous cycle that benefits not only our employees but also society at large."
The Samsung Microfinance Foundation will use the funds to provide unsecured, guarantee-free loans to financially vulnerable individuals and small business owners, covering operating costs, startup capital and emergency living expenses. Loans will carry an annual interest rate of 4.5 percent or below, and the foundation expects around 40,000 people to benefit.
Inclusive finance refers to efforts to improve financial access for low-income and vulnerable groups, ease the burden of high interest rates and support the economic recovery of debtors through debt restructuring. The Lee Jae Myung administration has made strengthening inclusive finance a national policy priority, pursuing measures including lower interest rates on financial products for low-income households, more active debt restructuring by financial institutions and a crackdown on illegal private lending.
Beyond this inclusive finance initiative, Samsung Electronics recently held a "Samsung Electronics Appreciation Festival" to share the benefits of its growth more broadly. From June 8 for four weeks, the company returned 20 percent of purchases of home appliances and smartphones in the form of Onuri gift vouchers. The company said total voucher refunds, initially estimated at around 400 billion won, are now believed to have more than doubled thanks to strong customer response.
jeongwan@heraldcorp.com
