Busan Bank launches preferential loan for daily-wage construction workers

Busan Bank said Friday it has launched a preferential loan product for daily-wage construction workers, aimed at improving their access to formal financial services and supporting their financial stability.

The product is the first project under an MOU on inclusive finance for construction workers that BNK Financial Group signed Wednesday with the Construction Workers Mutual Aid Association, the Korean Confederation of Trade Unions' Construction Industry Federation and the Federation of Korean Trade Unions' Construction Federation. It was designed to give daily-wage construction workers — who often struggle to verify their income or employment status — convenient access to mainstream financial services.

Busan Bank will use retirement mutual-aid contribution records issued by the Construction Workers Mutual Aid Association in its loan screening process, reducing the burden of submitting separate income verification documents. The bank will also draw on credit bureau estimated-income data to make borrowing easier for daily-wage workers who have difficulty proving their income.

To qualify, applicants must have accumulated mutual-aid contributions for at least 90 days within the past six months, or at least 180 days within the past year, based on a retirement mutual-aid contribution statement issued by the Construction Workers Mutual Aid Association. The loan ceiling is 35 million won ($24,300), with an interest rate capped at 5.5 percent per year to reduce the financial burden on borrowers.

The product is available starting Friday at all Busan Bank branches. The bank plans to expand the service to non-face-to-face channels, including mobile banking, in the future.

"This is inclusive finance in practice — helping construction workers who struggle to verify their income access financial services on a stable footing," a Busan Bank official said. "We will continue to look closely at those left in financial blind spots and expand tailored financial support that customers can truly feel."