Construction workers to gain access to low-interest loans under new partnership

The Construction Workers Mutual Aid Association is teaming up with BNK Financial Group and the country's two major labor federations to launch financial products tailored exclusively for construction workers. The initiative aims to improve financial access for construction workers, who have long struggled to use mainstream banking services due to irregular income and low credit scores.

The association signed an inclusive finance MOU with BNK Financial Group, the Federation of Korean Trade Unions' construction federation and the Korean Confederation of Trade Unions' construction industry federation at Busan Bank's headquarters on Wednesday. The agreement was pursued as part of the government's policy to strengthen inclusive finance for low-income and vulnerable groups.

Under the MOU, the association and BNK Financial Group will jointly develop and supply credit loan products exclusively for construction workers and will pursue debt relief for workers injured on the job. The association will provide records of retirement mutual-aid contributions to support loan screening, while the Federation of Korean Trade Unions and the KCTU will inform their members and construction workers nationwide about the financial support system. As a follow-up, Busan Bank and Kyongnam Bank will launch low-interest credit loan products dedicated to construction workers.

Construction workers have long found it difficult to secure bank loans even when they needed funds for daily living expenses, largely because of irregular employment and the challenges of verifying income. Labor groups have consistently called for the expansion of low-interest loan products linked to commercial banks, and the need for financial support was raised as a key issue at a construction industry town hall meeting the Ministry of Employment and Labor convened in March. The association said the MOU reflects a systemic response to demands from the field.

"This agreement is a starting point for lowering the barriers to financial services and allowing construction workers to use them more stably," said Jang Geon, chairman of the Construction Workers Mutual Aid Association. "We will continue to expand financial and welfare support to improve the livelihoods and rights of construction workers."