The Korea Federation of Saemaul Geumgo announced Monday that its member institutions nationwide disbursed a total of 217 billion won ($157 million) in policy funds during the first half of this year through Haetsal Loan, municipal partnership loans and small business loans.
By product, the breakdown was 38 billion won for Haetsal Loan, 163 billion won for municipal partnership loans and 16 billion won for small business loans. Interest rates range from roughly 2 to 6 percent per year depending on the product.
Haetsal Loan supports the financial stability of vulnerable borrowers who have difficulty accessing conventional credit, backed by guarantees from the Korea Inclusive Finance Agency. Municipal partnership loans are extended to local self-employed workers and small business owners at low interest rates under agreements between local governments and individual saemaul geumgo branches. Small business loans draw on policy funds from the Small and Medium Business Corporation to help owners stabilize operations and strengthen financial self-sufficiency.
The federation's annual policy fund disbursements have grown steadily — from 295.8 billion won in 2023 to 312.3 billion won in 2024 and 405.2 billion won last year, a 29.7 percent increase from the prior year. With 217 billion won already disbursed in the first half alone, full-year lending is expected to surpass last year's total.
Policy funds are being channeled primarily to areas outside the Greater Seoul metropolitan area, where financially vulnerable populations are more concentrated. About 70 percent of the federation's 3,198 branches nationwide operate outside the capital region, and more than 460 branches are located across 89 designated population-decline zones, helping sustain local financial networks.
When customers visit branches for general credit loans or financial consultations, staff review their repayment capacity and eligibility and proactively guide them toward low-interest policy products when applicable. The federation also plans to compile standout regional support cases into content to be shared with branches across the country.
"We have been supporting ordinary people and small business owners from the closest point to their communities," a federation official said. "We will expand the supply of policy funds tailored to each customer's situation and serve as a reliable pillar of local economies."
won@heraldcorp.com
