FSC, Gangwon Province and Shinhan Bank to launch integrated financial support center

Policy lending, debt relief, employment and welfare counseling under one roof

Preferential-rate savings and loan products planned for center users

Fourth regional collaboration model after Busan, Gwangju and North Jeolla Province

FSC Chairman Lee Eok-won (second from right) poses for a photo after signing an MOU with Gangwon Special Self-Governing Province Governor Woo Sang-ho, Korea Inclusive Finance Agency President Kim Eun-kyung (who also serves as Credit Counseling and Recovery Service chairperson) and Shinhan Bank President Jeong Sang-hyeok at Shinhan Bank's headquarters in Jung-gu, Seoul, on Friday afternoon. The agreement aims to strengthen support for low-income and vulnerable residents in Gangwon Province through a community-based integrated support model. [FSC]

Low-income and vulnerable residents in Gangwon Province will soon be able to access policy lending, debt restructuring, and employment and welfare counseling all in one place, as plans move forward to establish an integrated financial support center in the region. Shinhan Bank also plans to develop preferential-rate savings and loan products for center users.

The Financial Services Commission signed an MOU Friday with Gangwon Special Self-Governing Province, the Korea Inclusive Finance Agency, the Credit Counseling and Recovery Service and Shinhan Bank at Shinhan Bank's headquarters to strengthen community-based integrated support in the Gangwon region. FSC Chairman Lee Eok-won, Gangwon Governor Woo Sang-ho, Korea Inclusive Finance Agency President Kim Eun-kyung — who concurrently chairs the Credit Counseling and Recovery Service — and Shinhan Bank President Jeong Sang-hyeok attended the signing ceremony.

The centerpiece of the agreement is the establishment of a Gangwon Inclusive Finance Integrated Support Center, where the Korea Inclusive Finance Agency, the Credit Counseling and Recovery Service and private financial institutions will operate under one roof. The center will offer policy lending, debt restructuring, employment and welfare referrals, and private financial counseling in a single visit.

Customers who qualify for mainstream financial products will be referred to private financial institutions, while those with low credit scores who cannot access standard products will be directed to policy lending programs — channeling support based on each individual's needs.

The partners also plan to develop Gangwon-specific financial products in collaboration with Shinhan Bank, including savings accounts and loans with preferential interest rates for local residents who use the integrated support services, with the aim of helping them build assets and gain access to the formal financial system.

Outreach counseling will also be expanded for residents who have difficulty visiting the center in person. Staff will travel to communities to provide inclusive finance, employment and welfare consultations, and counselors from the integrated support centers and community administrative welfare centers will make reciprocal visits to each other's offices to share knowledge about available programs.

FSC Chairman Lee Eok-won speaks at the MOU signing ceremony for strengthening support for low-income and vulnerable residents in Gangwon Province, held at Shinhan Bank's headquarters in Jung-gu, Seoul, on Friday afternoon. [FSC]

Gangwon is the fourth region where the FSC has signed a regional integrated support agreement, following Busan, Gwangju and North Jeolla Province. Since 2024, the FSC has operated a system linking financial assistance with employment and welfare services. Through 52 inclusive finance integrated support centers nationwide, cumulative referrals from financial services to employment, welfare and other programs reached approximately 320,000 through June this year.

The FSC noted that access to support centers in Gangwon Province is relatively limited given the region's vast area. Seoul operates six centers, while Gangwon — roughly 30 times larger in area — has only four. Although Gangwon's population is about 16 percent of Seoul's, the number of residents receiving integrated support referrals there amounts to only about 10 percent of Seoul's figure.

"Balanced development is not a choice or a favor — it is an essential strategy for South Korea's survival and sustained growth," FSC Chairman Lee said. "The FSC will continue working to ensure that all citizens, regardless of where they live, can fully and more attentively benefit from integrated support services."

Shinhan Bank President Jeong said he was honored to join the integrated support agreement, which aims to provide more tangible help to low-income and vulnerable residents in Gangwon Province. "We will continue to fulfill our responsibilities as a private financial institution in practicing inclusive finance, so that our customers can enjoy banking that is easier and more accessible," he added.

The FSC plans to use the collaboration models operating in Busan, Gwangju, North Jeolla Province and Gangwon as a foundation to expand community-based integrated support to other regions, and to develop additional support measures tailored to the characteristics of each area.

Meanwhile, the FSC has allocated 1.08 trillion won ($796 million) for programs to stabilize the livelihoods of low-income households in next year's budget. The agency plans to channel 527.4 billion won into special guarantee programs and youth lending under the Haetsal Loan scheme, and to supply 600 billion won through a revamped loan program — rebranded as the "K-Minseong Jikim Loan" — designed to protect borrowers from illegal private lending.

rim@heraldcorp.com