Ko joins relay campaign to combat illegal private lending

Credit union to establish 50 billion won inclusive finance support fund

Korea Credit Union Federation President Ko Young-chul poses for a photo after joining the 'Life-Saving Finance' relay campaign. [Korea Credit Union Federation]
Korea Credit Union Federation President Ko Young-chul poses for a photo after joining the 'Life-Saving Finance' relay campaign. [Korea Credit Union Federation]

Korea Credit Union Federation President Ko Young-chul has joined the "Life-Saving Finance" relay campaign, aimed at protecting ordinary citizens and small business owners from illegal private lending. The federation plans to expand support for financially vulnerable groups by supplying 1 trillion won ($755 million) in inclusive finance annually and establishing a 50 billion won support fund.

The federation said Wednesday that Ko joined the campaign after being nominated by In Tae-yeon, chairman of the Small Enterprise and Market Service. Launched in July, the campaign was designed to encourage participation from the financial sector to prevent financially vulnerable people from being pushed toward illegal lenders.

Ko delivered the message: "Life-saving finance will stand guard so that no one is driven to illegal private lenders any longer," reaffirming the federation's commitment to inclusive finance.

Earlier, at an inclusive finance vision declaration ceremony held at the National Assembly in August, the federation announced plans to supply 1 trillion won in inclusive finance per year and establish a 50 billion won inclusive finance support fund. The initiative aims to improve financial access for low- and mid-credit borrowers and low-income groups, while supporting individual credit unions in expanding their inclusive finance offerings.

The annual supply plan breaks down as follows: 200 billion won for low- and mid-credit borrowers, 300 billion won for low-income borrowers, 100 billion won for online Saetdol loans, 200 billion won for online Haetsal loans, and 200 billion won for social finance. The separately established support fund will be used for principal protection and interest subsidies, reducing the financial burden on individual credit unions.

"Finance must serve as a pillar that helps struggling neighbors get back on their feet," Ko said. "We will lead the way in easing the burden on ordinary citizens and small business owners, and in realizing the value of shared growth through inclusive finance."

Meanwhile, Ko nominated Gwangju-South Jeolla Special Metropolitan City Mayor Min Hyeong-bae and Gwangju Credit Guarantee Foundation Chairman Yeom Gyu-song as the next participants in the campaign.


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